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
VARVARA [1.3K]
3 years ago
8

Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate 6.4%. Assuming the stock market i

s efficient and the stocks are in equilibrium, does stock A has higher dividend yield than Stock B? A B Beta 1.10 0.90 Constant growth rate 7.00% 7.00% Provide detailed explanation
Business
1 answer:
scoray [572]3 years ago
4 0

Answer:

Yes, Stock A has higher dividend yield

Explanation:

given data

market risk premium = 6.0%

risk-free rate = 6.4%

                                                       A                                        B

Beta                                                1.10                                    0.90

Constant growth rate                    7 %                                     7%

to find out

does stock A has higher dividend yield than Stock B

solution

we get here Stock A rA = 6.4% + 1.1 × 6%

Stock A rA  = 13.00%

and

Dividend yield of stock A = rA - g

Dividend yield of stock A = 13.00% - 7%

Dividend yield of stock A  = 6%

and

for Stock B rB = 6.4%+ .9 × 6%

Stock B rB = 11.80%

and

Dividend yield of stock B = rA - g

Dividend yield of stock B  = 11.80% - 7%

Dividend yield of stock B = 4.80%

so we can say Yes, Stock A has higher dividend yield

You might be interested in
A Bill of Material (BOM) in MRP is defined as:
Brums [2.3K]

Answer:

The correct answer is letter "B": A listing of components, their descriptions, and the quantities of each required to make one unit of a product.

Explanation:

A Bill of Material (BOM) in Materials Requirement Planning (MRP) relates the final product with the raw materials, assemblies, parts, and components necessary to manufacture a unit of that good. The BOM is a document that itemizes all the resources necessary to produce a good including at the top the product itself and a listing in hierarchical orders from components to individual materials.  

Creating an accurate BOM helps to have all the material necessary for production available.

4 0
3 years ago
The PTA is holding a raffle. The prize is a camera worth $200. Each raffle ticket costs $5. One hundred tickets are sold and a w
Illusion [34]

Expected value of the purchase of a ticket would be $3.00.

<u>Explanation</u>:

Given,  

Raffle ticket costs = $5.00.  

The prize = $200.  

One hundred tickets are sold = 100 × 5  

                                                  = $500.00  

champ is drawn and given the prize of worth $200.  

                           $500 - $200 = $300  

So the normal estimation of the bought ticket = $3.00  

The expected estimation of the acquisition of a ticket would be $3.00.

   

5 0
3 years ago
Read 2 more answers
With increased access to wireless technology and lighter​ weight, the demand for tablet computers has increased substantially. T
lakkis [162]

Answer: The answer is as follows:

Explanation:

(1) When the consumers buy tablet computers, so this exchange will be occurs in the product market because there is a exchange of goods and services between the two parties that the buyer of tablet computers and seller of the same. Product market refers to the market at which there is a buying and selling of goods and services.

(2) Whereas the resources that are used to produce the tablet computers are bought and sold in the factor market. Factor market refers to the market in which there is a buying and selling of inputs that are used to produce certain products.

4 0
2 years ago
Property-tax revenues for the county were reported at $770,000 on its governmental funds statement, but property-tax revenues on
Lemur [1.5K]

This Question is not complete

Complete Question:

Property tax revenues for Rose County were reported at $770,000 on its governmental funds statement, but property tax revenues for governmental activities on the County's government-wide statement of activities were reported at $800,000. This difference likely arose because:

A) an accounting error was made; property tax revenues should be reflected at the same amount on both statements

B) some revenues were deferred on the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance because the availability criterion was not met; however, those revenues should be recognized under the accrual basis on the government-wide statements.

C) property tax revenues are recognized in the period the bills are sent out for government-wide reporting but they are recognized when the cash is collected for fund reporting

D) when reporting on a fund basis, an allowance for uncollectibles reduces revenues; this allowance is not necessary for government-wide reporting

E) all of the above are likely explanations for the difference

Answer:

B) some revenues were deferred on the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balance because the availability criterion was not met; however, those revenues should be recognized under the accrual basis on the government-wide statements.

Explanation:

Government fund statements are statements of accounts for a particular fund.

Government-wide statements show us the statement of accounts for all funds used by the government. These funds can be funds used for government related activities or business related activities carried out by the government. The position of a government financially is always shown on a government wide statements.

5 0
3 years ago
Customers can act as collaborators to create the product or service
ohaa [14]

Answer:

Yes, this proces is called co-creation

Explanation:

Nowadays there are several organizations that involve the clients in the design, creation of a product or problem solving. E.g. bands asking for album titles to their fans. Bands letting the fans create the playlist for a given concert. Household consumers voting or giving insides in re branding campaigns.

8 0
3 years ago
Other questions:
  • Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep
    9·1 answer
  • Prior to 1750 and the onset of Industrial​ Revolution, very little economic growth occurred in the world. What marks the beginni
    7·1 answer
  • The responsibility report of Keith Parker, the manager of one of the divisions of an auto parts manufacturing company, includes
    12·1 answer
  • The concept "bureaucracy" refers to
    13·1 answer
  • Consider a firm with a 2013 net income of $20 million, revenue of $60 million, and cost of goods sold of $25 million. If the bal
    12·1 answer
  • QUESTION 31 Denzil was one of 50,000 people defrauded of $40 in an advertising scam. His best course of action to recover his mo
    9·1 answer
  • TB MC Qu. 16-98 At the beginning of the recent... At the beginning of the recent period, there were 1,020 units of product in a
    10·1 answer
  • If these patterns hold for decreases as well as for increases, by how much would the value of the financial securities decline i
    13·1 answer
  • madeline wants her son to be well-behaved when they go to church. for every five minutes he sits still, she gives him a piece of
    6·1 answer
  • Proof-of-Blank______ is a requirement to define an expensive computer calculation, also called mining, that needs to be performe
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!