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schepotkina [342]
3 years ago
11

The common stock of Auto Deliveries sells for $27.21 a share. The stock is expected to pay $1.80 per share next month when the a

nnual dividend is distributed. Auto Deliveries has established a pattern of increasing its dividends by 4.6 percent annually and expects to continue doing so. What is the market rate of return on this stock?
Business
1 answer:
DanielleElmas [232]3 years ago
5 0

Answer:

Market rate of return on stock = 11.2152%

Explanation:

Details provided are

Market rate per share = $27.21

Dividend to be paid at year end = $1.80

Expected dividend growth rate = 4.6%

Expected return of market has to be calculated.

Using the dividend growth model we have,

Price\ of\ share\ = \frac{Dividend\ at\ year\ end}{Market\ return\ - Growth\ rate}

27.21 = \frac{1.80}{Rm - 4.6}

Market return - growth = \frac{1.8}{27.21} = 6.6152

Market return = 6.6152 + 4.6 = 11.2152%

Market rate of return on stock = 11.2152%

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Answer:

the amount must be borrowed is $8,900

Explanation:

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Assume there must be one-to-one matching between consultants and projects. For the optimal schedule, what is the total number of
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Complete Question:

The president of a consulting firm wants to minimize the total number of hours it will take to complete three projects for a new client. Accordingly, she has estimated the time it should take for each of her top consultants-Charlie, Betty, Johnny, and Rick-to complete any of the three projects, as follows: Project (Hours) Consultant Charlie 16 11 13 Betty 15 14 18 Johnny 22 12 15 Rick 17 12 22 Assume there must be one-to-one matching between consultants and projects. For the optimal schedule, what is the total number of hours it will take these consultants to complete these projects? Options: 46 hours, 61 hours, 53 hours, 54 hours, 50 hours

Answer:

For the optimal schedule, the total number of hours it will take these consultants to complete these projects is:

54 hours

Explanation:

a) Data and Calculations:

                                        Project (Hours)

Consultant             A            B            C          D   Project assignment

Charlie                   13           16           11          13    Charles takes C for 11      

Betty                       11           15           14         18    Betty takes A for 11

Johnny                   15          22          12         15    Johnny takes D for 15

Rick                        17           17           12         22   Rick takes B for 17

Minimum hours     11            15          11          13    Total hours taken 54

b) To achieve optimal schedule, Consultant Betty should take project A, spending 11 hours.  Consultant Charlie should take project C for 11 hours.  Consultant Johnny should take project D for 15 hours, while Rick takes project B for 17 hours.  This gives a total of 54 hours spent on the four projects.

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Rosewood Company made a loan of $16,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rat
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Amount of interest (1st year) = $16,000 × 6% × 9 ÷ 12 = $720

Amount of interest (2nd year) = $16,000 × 6% × 3 ÷ 12 = $240

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