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Nastasia [14]
3 years ago
9

A stock is expected to maintain a constant dividend growth rate of 4.2 percent indefinitely. If the stock has a dividend yield o

f 5.5 percent, what is the required return on the stock
Business
1 answer:
babunello [35]3 years ago
7 0

Answer:

Explanation:

Required return = (dividend / price per share) + constant growth rate.

Dividend yield on the stock =  (dividend / price per share) = 5.5%

Therefore, Required return = 5.5% + 4.2% = 9.7%

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Suppose Ruston Company had the following results related to cash flows for 2020: Net Income of $9,100,000 Adjustments from Opera
elena-s [515]

Answer:

The Net Cash Flow is $9,300,000.

Explanation:

A statement of cash flows with amounts in thousands can be created to determine the Net Cash Flow as follows:

                             Ruston Company

                       Statement of Cash Flows

                              For the Year 2020

<u>Details                                                                    $'000    </u>

Net Income                                                            9,100

Adjustments from Operating Activities            <u>    1,100  </u>

Net Cash Flow from Operating Activities         10,200

Net Cash Flow from Investing Activities           (4,300)

Net Cash Flow from Financing Activities of   <u>    3,400  </u>

Net Cash Flow                                                <u>     9,300  </u>

Since the amount is in thousands, that implies that  the Net Cash Flow is $9,300,000.

7 0
3 years ago
If a taxpayer's pension or annuity includes contributions that were previously included in gross income, the taxpayer may genera
drek231 [11]
If some contributions to your pension or annuity plan were prior combined in gross income, you can omit the part of the distributions from income. You must know the tax-free part when the payments start. The tax-free part normally stays the same each year, even if the amount of the payment changes. Nevertheless, the whole amount of your pension or annuity that you can omit from your income is typically defined by your total cost.
3 0
3 years ago
According to a survey of American households: The probability that a household owns 2 cars, if annual income is over $25,000, is
vladimir1956 [14]

Answer: 0.48

Explanation:

P(A/B) = P(AnB)/P(B) where:

P(A/B) = The probability of event A occurring given that B has occurred.

P(AnB) = The probability of both events A and B occurring.

P(B) = the probability that event B occurs.

So let

P(A) = Probability that the residents of a household own 2 cars.

P(B) = Probability that the annual household income is greater than $25,000.

The question tells us that

P(A/B) = 0.8

Note that: P(A) = 0.7, P(B) = 0.6.

Since we want to work out P(AnB), because it gives the probability that residents have an annual household income over $25,000 and own 2 cars.

We would Rearrange our initial equation to make P(AnB) the subject formula becoming;

P(A/B) = P(AnB)/P(B)

P(B)*P(A/B) = P(AnB)

So, inserting our probabilities into this equation gives:

0.6*0.8 = 0.48

8 0
3 years ago
Choose one of the scenarios below and write a three-paragraph essay describing its effect on prices for food, housing, and oil.
Ray Of Light [21]
<span>The issue isn't black and white, a true answer is closer to the middle ground but to play devil's advocate I personally believe investors have a net positive effect on companies they keyword: invest in. Investments naturally leads to expansion and growth, that's always at least a main goal of anyone profitable company. It produces more jobs, but it can have the negative effect of curbing jobs in the name of cutting costs. A lasting problem is an overreliance in investment when companies don't have enough liquidity to continue running and is forced to sell assets valuable to the business in times of panics and reduced investment. Overall investors are in large part a reason for the success of modern corporations.</span>
4 0
3 years ago
Adam, the owner of The Toy Box (a toy store), has chosen his products carefully. They are all handmade of wood; none are cheap g
xz_007 [3.2K]

Answer:

b. blue ocean strategy

Explanation:

Instead of competing against rival companies in the mass-produced games market (red ocean), Adam is carving out his own market by offering the consumer a higher end product that, although is still composed of games, consists a in whole new segment with much less competition, if any (blue ocean).

Therefore, the correct answer is b. blue ocean strategy

4 0
3 years ago
Read 2 more answers
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