1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
A phone call to a government official by an employee of the enron corporation disclosed the deception and dishonesty of the firm
UNO [17]
This employee played the role of a: whistleblower.
3 0
3 years ago
The security model for Universal Containers in Private for the Case object. When a support case is raised by a user with the Cus
vodomira [7]

Answer:Share group

Explanation:

A share group is a professional peer group of individual from NGA member companies. These meeting provide the opportunity for like segments in the independent grocery industry to meet in person, problem solve, swap ideas and help non competing industry partners.

3 0
3 years ago
List three factors to consider when choosing a financial institution
jasenka [17]

When you are considering a financial institution you should consider what type of accounts you want to have, how much money you have and if you want to invest. Different financial institutions offer different rates and benefits for their members so it makes sense to figure out your options based on what you want in return.

8 0
3 years ago
Dana, Inc. recently completed 56,000 units of a product that was expected to consume 4 pounds of direct material per
AysviL [449]

Answer:

$34,000 Units

Step by Step Explanation:

Direct Material Quantity Variance

= SP x (AQ – SQ Allowed)

Therefore:

SQ allowed: $56,000 units x 4 lbs = $224,000 lbs.

Direct Material Quantity Variance: $8.50 x ($228,000 lbs – $224,000 lbs) = $34,000 Units

The direct material quality variance is $34,000 Units

4 0
3 years ago
Annette drove through an intersection without looking and hit Vincent's car that he had driven into the intersection without obe
Papessa [141]

Answer:

$70,000

Explanation:

Under a Comparative negligence theory,

When an accident occurs, the blame or fault is determined by the contributions of each party towards the accident.

In a pure comparative negligence theory, the victim or plaintiff who files a case, sue the other party and received some part of the damages and hence each party receives the amount related to their damages minus the part of their fault.

In our case, Annette fault contributes 30% to the collision and determined that her total loss was $100,000.

So, Annette will recover:

= Total loss - 30% of fault

= $100,000 - 0.3 × $100,000

= $100,000 - $30,000

= $70,000

4 0
3 years ago
Other questions:
  • Explain how petrocalpetrocal did not achieve its target market share in the total gasoline market but still exceeded its financi
    15·1 answer
  • The following information is available from the current period financial statements:
    11·1 answer
  • Tetra Co. uses the perpetual inventory system and a FIFO cost flow method. On January 1, the company purchased 2,000 units of in
    9·2 answers
  • The ________ approach to ethics holds that the moral worth of actions or practices is determined by their consequences and is co
    9·2 answers
  • Why was hop frog a triplicate treasure to the kink how did the gesture get his name
    12·1 answer
  • Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of . The company u
    8·1 answer
  • Forest Company, which uses a weighted-average process-costing system, had 7,000 units in production at the end of the current pe
    13·1 answer
  • Since 2009, job growth in the Internet-media sector has increased by what percentage?
    6·1 answer
  • In year 1, Heron Corp. has depreciation expense for income statement purposes of $10,000. The depreciation deduction on the tax
    8·1 answer
  • A resource management system in which decisions regarding resource access and use are vested in a community of identifiable memb
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!