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In-s [12.5K]
4 years ago
11

The expected return on Natter Corporation's stock is 14%. The stock's dividend is expected to grow at a constant rate of 8%, and

it currently sells for $50 a share. Which of the following statements is CORRECT?
a. The stock's dividend yield is 7%.
b. The stock's dividend yield is 8%.
c. The current dividend per share is $4.00.
d. The stock price is expected to be $54 a share one year from now.
e. The stock price is expected to be $57 a share one year from now.
Business
1 answer:
AysviL [449]4 years ago
7 0

Answer:

d. The stock price is expected to be $54 a share one year from now.

Explanation:

Using dividend discount model(DDM), find next year's dividend;

P0 = D1/ (r-g)

50 = D1/(0.14-0.08)

50 = D1/ 0.06

Multiply both sides by 0.06 to solve for D1;

50 *0.06 = D1

3 = D1

Next, year's dividend is $3

Dividend yield = D1/P0;

= 3/ 50 = 0.06 or 6% hence choices A& B are incorrect.

Next year's price; P1 = P0(1+g)

P1 = 50(1.08) = $54 hence choice D is correct

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The records of Lohse Stores included the following data: Inventory, May 1, at retail, $14,500; at cost, $10,440 Purchases during
bulgar [2K]

Answer:

$9,3

Explanation:

                             COST    RETAIL    RATIO

Inventory, May 1 $10,440        $14,500 .72

Purchases           31,550            42,900

Freight-in          2,000

Purchase discounts

                          (250)

Net markups                                  3,400

Net markdowns                           (1,300)

Totals excluding beginning inventory

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Goods available $43,740          59,500

Sales                                          (46,500)

Inventory, May 31                         $13,000

Estimated inventory, May 31

($13,000 × .72) $ 9,360

3 0
3 years ago
How can gdp per capita and poverty rates indicate standards of living in each system?​​
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3 years ago
If your economics class was graded on a curve and everyone agrees to study only half as much, everyone would get the same grade
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Answer:

studying

Explanation:

The coming together by students not to study is an example of collusion in an oligopoly.

An Oligopoly is when there are few large firms operating in an industry.  Collusion is when people come together and decide on a particular course of action. It is usually non competitive

The dominant strategy here is to study.

Dominant strategy is the best option for a player regardless of what the other players are doing.

the students prefers to study more and get an A or to study the same amount as other students and get a C. Her least preferred option is an F. Since she does not know the actions of the other students, are best option is to study

7 0
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Answer:

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Conversion costs incurred during period             $26,500

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Cost per equivalent unit for conversion = $42,400/5,300

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Therefore, Department X's cost per equivalent unit for conversion costs using the weighted average method would be $8.00

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= (9.09 + 17.355 + 16.5289) / 2.48685

= $17.28

8 0
3 years ago
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