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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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The Tidewater State Bank has $1000 in total assets (all of which are earning assets), $700 of which will be replaced with in the
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Answer:

4.6%

Explanation:

The computation is shown below:

= (Interest on assets - Interest on liabilities) ÷ (Total earning assets)

where,

Interest on assets = (8% + 2% × $700) + 8% × $300

= $70 + $24

= $94

Now the interest on liabilities equal to

= 5% × 400 + (5% + 2% × 400)

= $20 + $28

= $48

So, the net interest margin equal to

= ($94 - $48) ÷ ($1,000)

= 4.6%

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3 years ago
Oona wants to conduct research on personnel management, workplace environment, and what type of environment results in high leve
sesenic [268]

Oona should conduct research in the area of <u>"industrial-organizational" </u>psychology.


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Industrial-organizational psychologists use psychological standards and research strategies to take care of issues in the work environment and enhance the personal satisfaction. They think about work environment profitability and administration and representative working styles. They figure out the morale and identity of an organization or association.

8 0
2 years ago
Read 2 more answers
Do some research on mergers and acquisitions. What were the five largest mergers– acquisitions last year? Make a list of the par
viktelen [127]

Answer:

Mergers and Acquisitions in 2019:

1. The five largest mergers-acquisitions in 2019:

   Acquirer   and  Partner

a. BB&T and SunTrust

b. Schwab and TD Ameritrade

c. Raythem and UTC

d. Newmont and Goldcorp

e. Salesforce and Tableau Software

2. Reasons for the M&A:

a. BB&T and SunTrust                        - to cut cost

b. Schwab and TD Ameritrade          - to save money

c. Raythem and UTC                        - to become largest defence company

d. Newmont and Goldcorp               - to acquire competitive advantage

e. Salesforce and Tableau Software - to boost revenue

3. Some of the M&A transactions do not make any strategic sense.  For example, now that Raythem and UTC combined want to form the largest defense company, do they add much to their stockholders returns?  Some others acquired to cut cost will experience the huge costs of acquisition, which are, most times, too large to be written off in a single year.

Explanation:

Major financial transactions done at the corporate level for the purpose of consolidating the assets of two or more companies, growing market share, and eliminating competition are called Mergers and Acquisitions (M&A).  Consolidation of companies may be achieved through mergers, acquisitions, assets purchase, management acquisitions, etc.

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2 years ago
The staff educator from the hospital’s respiratory unit is providing a public educational event. The educator is talking about h
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Answer:

Teaching strategies to reduce complications of existing diagnoses

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8 0
3 years ago
Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represe
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Answer: The correct answer is e) $32.

Explanation:

Petty cash fund. $300

Office supplies. (80)

Merchandise inventory. (160)

Miscellaneous expenses. (20)

Cash shortage. (8)

Balance in petty cash. $32

In terms of accounting entries,

Debit Office supplies. $80

Debit Merchandise inventory. $160

Debit Miscellaneous expenses. $20

Debit Cash shortage. $8

Credit Petty cash refund. $268

In the above entries, $268 would be refunded to petty cash fund to reinstate it to $300.

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2 years ago
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