We know the stock has a required return of 12 percent, and the dividend and capital gains yield is equal.
<h3>Dividend yield and capital gains yield</h3>
Dividend yield = 1/2(.12)
Dividend yield = .060 = Capital gains yield
Now we know both the dividend yield and capital gains yield. The dividend is simply the stock price times the dividend yield, so:
D1 = .060($65.50)
D1 = $3.93
This is the dividend for next year. The question asks for the dividend this year. Using the relationship between the dividend this year and the dividend next year:
D1 = D0(1 + g)
We can solve for the dividend that was just paid:
$3.93 = D0(1 + .060)
D0 = $3.93 / 1.060
D0 = $3.71
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Franchises, they start off as some people to a majority of people
Correlation is a measure to define the relationship between two variables.
<u><em>Error in each of the given statements is briefly explained as follows:</em></u>
<u><em /></u>
- a). In the first statement, gender refers to a nominal variable and income refers to a continuous variable. It is not possible to compute the correlation between a continuous variable and a nominal variable. Hence, there exists no correlation between the income of American workers and their gender.
- b). It is not possible to have a value of correlation as 1.09 between two variables. It is because the value of correlation ranges between -1 to +1. Thus, the value of correlation i.e. 1.09 is computed wrongly in this statement.
- c). Correlation represents the relationship between two variables; it cannot compute the number of bushels. Therefore, in this statement number of bushels cannot be assigned to correlation.
<u><em>The complete question is:</em></u>
“
Each of the following statements contains an error. Explain what’s wrong in each case.
(a) "There is a high correlation between the gender of American workers and their income."
(b) "We found a high correlation (r = 1.09) between students’ ratings of faculty teaching and ratings made by other faculty members."
(c) "The correlation between planting rate and yield of corn was found to be r = 0.23 bushel."
“
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<span>In 2014, wagner industries purchased a piece of equipment with an estimated useful life of 10 years. each year, wagner expenses 1/10 of the equipment’s cost. this is an example of depreciation.</span>