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
daser333 [38]
3 years ago
14

The expected rate of return for a stock whose next dividend is "DIV1", that has a required rate of return "r" and expects to gro

w its future dividends at a rate of "g" is ________. r = g r = DIV1/P0 r = DIV1 + P0/g r = (DIV1/P0) + g
Business
1 answer:
Tema [17]3 years ago
6 0

Answer:

The correct answer is r=(DIV1/P0)+g

Explanation:

The expected rate of return for a stock is usually the dividend yield  added to capital gains yield.

Dividend yield is the percentage of the share's price that the company pays to shareholders as dividends and the formula is the dividends divided by the share price, hence in this scenario it DIV1/PO

On other hand,capital gains yield is the percentage increase of the share price over time. In other words, the share price growth rate,which is a market expectation of the company's performance.The g given in the question depicted this.

Without mincing words,the expected rate of return on the stock is dividends yield(DIV1/P0) plus the capital gains yield(g)

You might be interested in
Which describes the process by which assets or equipment decrease in value
JulsSmile [24]
Depreciation is the correct answer
4 0
2 years ago
In an economy, the government wants to increase aggregate demand by $50 billion at each price level to increase real GDP and red
Tems11 [23]

Answer:

(B) $20 billion

Explanation:

Given a certain level of MPC, an increase in government spending (G) by a certain amount translates to an increase in aggregate demand (AD) through the relationship below.

ΔAD = \frac{ΔG}{1 - MPC}

where Δ means <em>change.</em>

<em />

Therefore, given ΔAD of $50 billion, and MPC of 0.6,

ΔAD = \frac{ΔG}{1 - MPC}

= 50 = \frac{ΔG}{1 - 0.6}

= 50 = \frac{ΔG}{0.4}

= ΔG = 50 * 0.4 = 20

Therefore, increase in government purchases = $20 billion.

3 0
3 years ago
A(n) is a long-term contract under which a borrower agrees to make payments of interest and principal on specific dates. There a
LenaWriter [7]

Answer:

Bond,treasury

Explanation:

A bond refers to the contract between borrower and lender stipulating that the borrower must pay periodic interests and principal on specified dates .

The interest is also known as coupon payment has fixed  rate usually  quoted in the bond agreement which could be paid annually or semi-annually to te lenders.

Treasury refers to the bond issued by the national government such as the U.S government and carries a lower rate of return as the risk attached too is low ,hence lower risk brings about lower return since the government is not likely to default in discharging its obligations

8 0
3 years ago
The following exchange demonstrates which problem solving technique?
Klio2033 [76]

Answer:

a. Fishbone Diagram

Explanation:

The problem-solving process can be defined as the systematic approach used to identify and determine the solution to a particular problem.

The steps involved in the problem-solving process are;

1. Identify and define the problem.

2. Gathering of information.

3. Consider your options.

4. Weigh disadvantages and evaluate a solution.

A Fishbone diagram is also referred to as Ishikawa diagram and it can be defined as a cause and effect diagram that is typically used by managers to identify possible reasons for failure, defect, variation, imperfection, so as to discover the root cause of a problem and proffering the right solution. It was designed and developed by Professor Kaoru Ishikawa in the 1960s.

Cause and effect can be defined as the relationship between two things or events in which an occurrence one (cause) leads to the occurrence of another (effect).

Hence, the following exchange "We pay higher costs than we need to when we go bowling because we don’t own our own equipment." demonstrates the Fishbone diagram.

3 0
3 years ago
Read 2 more answers
Kelly's company is selecting a manager to expand operations in china. kelly's boss says the new manager must display high cultur
Morgarella [4.7K]

If Kelly's company is selecting a manager to expand operations in china. kelly's boss says the new manager must display high cultural intelligence. what would most likely help kelly get the job is: displaying appreciation for diversity.

<h3>What is  cultural intelligence?</h3>

Cultural intelligence can be defined as the ability of a person to know about different culture and to as well adapt and relate with people that are of culture that is different from his.

Based on the scenario kelly can get the job if he display the appreciation for cultural diversity which will inturn enables the recruiter known that kelly has knowledge about other cultures.

Therefore what would most likely help kelly get the job is: displaying appreciation for diversity.

Learn more about Cultural intelligence here:

brainly.com/question/4289199

brainly.com/question/14726265

#SPJ1

3 0
2 years ago
Other questions:
  • RajDee Furniture Company (RFC) buys and sells office furniture. The company buys chairs from a manufacturer for $40 per unit. Or
    7·2 answers
  • according to the rule of 72, if Beth invests $200 and $1300 into two separate accounts with the same interest rate, which amount
    7·2 answers
  • Sweet, Inc. issued a $140,000, 4-year, 12% note at face value to Flint Hills Bank on January 1, 2017, and received $140,000 cash
    5·1 answer
  • Explain which economic system (market, planned, mixed, or traditional) you think is best for consumers. describe at least one re
    9·1 answer
  • The following expenditures are made during the current year: January 1, $30,000; July 1, $290,000; September 1, $800,000; and De
    10·1 answer
  • Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its bluebe
    15·1 answer
  • When the accounts of Sunland Inc. are examined, the adjusting data listed below are available on December 31, the end of the ann
    15·1 answer
  • On December 1, 2015, Logan Co. purchased a tract of land as a factory site for $800,000. The old building on the property was ra
    15·1 answer
  • If bagels and donuts are substitutes, then a decrease in the price of donuts will result in:Multiple ChoiceAn increase in the de
    10·1 answer
  • The starch classification that consists of the percentage of people who remembered having previously seen the advertisement in t
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!