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
erma4kov [3.2K]
3 years ago
8

Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $27

.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?
Business
1 answer:
natali 33 [55]3 years ago
4 0

Answer:

5.95%.

Explanation:

Expected dividend (D1) $1.25

Stock price $27.50

Required return 10.5%

Dividend yield 4.55%

Growth rate = rS - D1/P0 = 5.95%.

You might be interested in
Information in the Financial Statements A financial statement is a summary of all the financial transactions that have oocuirred
Fudgin [204]

Answer:

 Balance sheet           Income statement        statement  of cashflows

 owner's equity         Cost of Goods sold         Net changes is cash

      land                       Income Tax                      Cash balance

      Patent                    Insurance expenses

      cash balance          Advertising expenses

      Account receivable

    Long term liability

Explanation:

6 0
3 years ago
a coupon bond that pays interest of $100 annually has a par value of $1,000, matures in 5 years, and has ytm of 10%. the price o
balandron [24]

Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental). A bond is a fixed obligation to pay that is issued by a corporate or government organization to investors.

<h3>What is bond?</h3>
  • Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental). A bond is a fixed obligation to pay that is issued by a corporate or government organization to investors.
  • A bond is a fixed obligation to pay that contains the specifics of the loan and its payments. Bonds are a way to raise money for infrastructural or operational projects. Bonds are typically repaid as of the bond's maturity date and contain periodic coupon payments.
  • Bonds are tradable assets that are securitized versions of corporate debt issued by businesses. Since bonds historically paid debtholders a fixed interest rate (coupon), they are referred to as fixed-income instruments. Interest rates that are variable or floating are also extremely prevalent today.

FV = 1,000,

PMT = 70,

n = 5,

i = 10,

PV = 886.28.

To learn more about Bonds refer to:

brainly.com/question/25965295

#SPJ4

7 0
1 year ago
Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities.
storchak [24]

Answer:

Ans. your monthly payment, for 30 years is $9,257.51 if you buy a property worth $1,000,000 and you make a down payment of $100,000

Explanation:

Hi, first we have to change the fixed rate in terms of an effective monthly rate, which is 1% effective monthly (12% nominal interest/12 =1% effective monthly). After that, take into account that the property is going to be paid in 30 years, but since the payments are going to be made in a montlhly basis, we have to turn years into months (30 years * 12 = 360 months).

After all that is done, all we have to do is to solve the following equiation for "A".

PresentValue=\frac{A((1+r)^{n} -1)}{r(1+r)^{n} }

Where:

A= Annuity or monthly payment

r= Rate (effective monthly, in our case)

n= Periods to pay (360 months)

Everything should look like this.

900,000=\frac{A((1+0.01)^{360} -1}{0.01(1+0.0.1)^{360} }

900,000=A(97.2183311)

\frac{900,000}{97.2183311} =A

A=9,257.51

Best of luck.

6 0
3 years ago
What was the greatest percentage loss in your total portfolio?
Natasha2012 [34]

-2.99% was the greatest percentage loss in total portfolio.

Subtract the purchase price from the current price and divide the result by the asset's purchase prices to determine the net gain or loss in the portfolio. The above method can be modified to determine a portfolio's percentage return. You will base your calculations on the overall value of your portfolio rather than the stock's acquisition price and market value.

A stock portfolio is a selection of equities you purchase in the anticipation of a profit. You can become a more robust investor by assembling a varied portfolio that spans several industries.

To learn more about portfolio refer here:

brainly.com/question/17165367

#SPJ4

Complete Question:

You'll now need to do some math to compute the percentage change in the value of your total portfolio. For each monthly statement, add up the value of the two funds to get your total portfolio value at the end of that month. Compute the month to month percentage change of the value of your portfolio by subtracting the beginning value from the ending value and then dividing it by the beginning value . What was the greatest percentage loss in your total portfolio?

3 0
2 years ago
Rebecca, a department manager, has been dealing with two workers in her department who do not get along. due to family problems
Lerok [7]
<span>Rebecca is enacting the managerial role of mediator. By having both parties in the conflict meet to discuss the issue, Rebecca is hoping to resolve the conflict by having them talk things out in her presence while she unemotionally guides the discussion and make sure it stays on task.</span>
5 0
3 years ago
Other questions:
  • Question #1: Assume an initial starting Ft of 300 units, a trend (Tt) of eight units, an alpha of 0.30, and a delta of 0.40. If
    11·1 answer
  • You have just taken a job as an entry-level manager for a company that provides rug-cleaning services. The company has a large n
    14·1 answer
  • Sheffield Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs
    12·1 answer
  • Elise enters into a contract to purchase jd's house and then changes her mind. jd sues her for breach of contract. the lawsuit f
    11·1 answer
  • In cost-benefit analysis, the government should intervene as long as
    15·1 answer
  • You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a ve
    7·1 answer
  • Thomlin Company forecasts that total overhead for the current year will be $11,533,000 with 162,000 total machine hours. Year to
    13·1 answer
  • The opportunity cost of buying a ticket to a major league baseball game and then going to the game is: the time spent at the gam
    13·1 answer
  • HELP IM TIMED!!!!!!!!!
    11·1 answer
  • B)
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!