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
viva [34]
3 years ago
7

Builtrite Furniture just paid an annual dividend of $2.50 last week and investors' believe that dividends will continue to grow

at a 8% rate into the future. The current price of Builtrite's common stock is $76. What return do investors' require of Builtrite stock?
Business
1 answer:
Ivenika [448]3 years ago
6 0

Answer:

r = 11.55%

Explanation:

Given that,

Annual dividend paid last week, D1 = $2.50

Dividend growth rate, g = 8%

current price of common stock = $76

Stock price = D1 ÷ (r - g)

$76 = [$2.50 × (1 + 8%)] ÷ (r - 8%)

$76 = 2.7 ÷ (r - 8%)

(r - 8%)  = 0.0355

r = 0.0355 + 0.08

  = 0.1155 × 100

  = 11.55%

Therefore,

Return, r = 11.55%

You might be interested in
If Congress and the president want to keep real GDP at its potential level in​ 2021, they should use an expansionary fiscal poli
Nataly_w [17]

Answer:

a) increasing government spending or cutting taxes

Explanation:

Fiscal polices are polices enacted by the government to achieve certain macroeconomic objectives. There are two types of fiscal policies:

1. Expansionary fiscal policy: These are government policies which involves increasing government spending or cutting taxes. Decreasing taxes increases disposable income and increases consumption spending.

Increasing government spending increases money supply which increases consumption spending.

2. Contractionary fiscal policy: These are government policies which involves decreasing government spending or increasing taxes.

Monetary policy are policies enacted by the Central bank to achieve certain macroeconomic objectives.  

I hope my answer helps you

4 0
3 years ago
Henry and Rochelle work in the claims department of an insurance company. On Rochelle’s birthday, Henry stops by her cubicle and
Vera_Pavlovna [14]

Answer:

C)

Explanation:

Based on the information provided within the question in this case Rochelle does not have a claim for sexual harassment because her claim would be based on one isolated incident that is not serious enough to warrant undue concern. This is the case since Henry has not made a single advancement towards Rochelle since she declined his date.

8 0
3 years ago
A(n) ____ activity is one that happens on a regular basis.
astra-53 [7]
A recurring activity is one that happens on a regular basis. These activities usually are very similar and refer to the same thing and objective. Recurring activities that an organization carries out in order to enhance its efficiency and its ability to meet requirements can lead to c<span>ontinual improvement.
</span>

6 0
3 years ago
Read 2 more answers
Charles is planning a trip to Guatemala. He has allocated $415 for spending money. If the exchange rate from US dollars to Guate
svet-max [94.6K]
A. its the answer  3,533.10 quetzals
4 0
3 years ago
Read 2 more answers
When you first started your new business, you were so excited about the large volume of orders you had. One year later, you find
ioda
I would suggest it would most likely to be either A or B or both, however if I had to pick one I would go for A.

A - The question suggests you may have been putting more effort and <span>enthusiasm</span> into sales of the products for your new business "<span>you were so excited about the large volume of orders you had" which may mean after your first year of business you may have started to slack of or get complacent with putting you business out there marketing wise, also when launching a product for the first time people are interested in the new and latest thing (such as a new business) after a while people start to forget unless you have marketing and advertising to remind them.
</span>
B - If the product you offer is unique and you were the first business to sale this / these items then after a year it is possible other competitors have started to copy you however this would completely depend on the products you sale.

C - Given you already had large orders in the first year people are happy to pay for the products you offer so this would exclude C.

D - If you have already had many orders in the first year people obviously want the products you sale even if you only sale 1 or 2 things so unlikely to be D.


8 0
3 years ago
Other questions:
  • Which careers require a person to be confident when speaking in front of audiences?
    6·2 answers
  • An investment project is expected to generate earnings before taxes (EBT) of $60,000 per year. Annual depreciation from the proj
    13·1 answer
  • The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and
    13·1 answer
  • A business is concerned with many day-to-day activities. Some of the most important are the planning and conception of the produ
    11·1 answer
  • Melissa is a minor who agrees to purchase a car from Umberto for $10,000 one month after she turns eighteen years of age. On tur
    10·1 answer
  • Which theory suggests that employees can be motivated by objectives that are specific and challenging but achievable and that ha
    9·1 answer
  • How can expansionary and contractionary tax policies be used to manage the economy? Be sure to give your answer in two to three
    7·2 answers
  • Explain the importance of decision making in management
    12·1 answer
  • Depletion Entries Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons
    5·1 answer
  • Which method would interest groups most likely use to help shape public policy? enacting regulations to enforce their goals hiri
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!