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
serg [7]
3 years ago
11

Suppose you know that a company’s stock currently sells for $56 per share and the required return on the stock is 10 percent. Yo

u also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
Business
1 answer:
Elenna [48]3 years ago
5 0

Answer:

$2.8 divdends per share

Explanation:

$56 market price

Rate of return 10%

The gain for an investment in stocks is:

\frac{DividendsYield+SharePriceVariation}{Investment} = $Return on Investemnt

In this case we are told that this is distribute evenly, this means:

dividends paid = market price gain

So dividends yield 5% and market price yields another 5% to achieve the 10%

So currently $56 market price x 0.05% = $2.8 divdends per share

You might be interested in
While developing a new product line, Cook Company spent $3 million two years ago to build a plant for a new product. It then dec
Mariulka [41]

Answer:

C

Explanation:

This is an example of an externality, because the very existence of the building affects the cash flow for any new project that Rowell might consider.

3 0
3 years ago
Why is it important to distinguish between unilateral and mutual mistakes?
SVEN [57.7K]

Answer:

The correct answer is because it determines which contracts could be voidable

Explanation:

A unilateral mistake is when just one party to a contract is mistaken as to the terms contained in a contract.

Commonly, the unilateral mistake does not make a contract void; The mutual mistake makes it.

6 0
3 years ago
Olive Corporation has two divisions, Pressing and Extracting. The company's primary product is Lavender Oil. Each division's cos
Alex777 [14]

Answer:

$15,000

Explanation:

Operating income is the difference between the net sales or revenue generated by a business and the operating expenses of the business.

The operating expenses of the business may be classified into 2 groups namely the fixed and variable costs.

The total operating cost of the business

= ( $9 + $6 + $28 + $32) per barrel

= $75

operating income of both divisions

= 200 ( $150 - $75)

= 200 * $75

= $15,000

5 0
3 years ago
Assume that there are no fixed costs and ac = mc = $200. at the profit-maximizing output and price for a monopolist, producer su
Fofino [41]

Assume that there are no fixed costs and ac = mc = $200. at the profit-maximizing output and price for a monopolist, the producer surplus is $3200.

The government provides public services such as railroads. They are therefore the monopoly as no new partners or private companies are allowed to operate the railways. A monopoly is an individual, group, or company that controls a market for goods or services.

A monopolist is a person, group, or company that controls and controls the market for a particular good or service. This lack of competition and lack of alternative goods or services means that monopolists have enough power to charge high prices in the market.

Learn more about monopolists at

brainly.com/question/13113415

#SPJ1

5 0
2 years ago
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying $
11111nata11111 [884]

Answer:

D. Less; Less

Explanation:

Given that

CPI in 2005 = 1.68

Wage in 1972 = 7200

Wage in 2005 = 30,000

CPI in 1971 = 0.418

Therefore,

Real wage in 1972 = wage in 1972/CPI in 1972

= 7200/0.418

= $17,224.88

Real wage in 2005 = wage in 2005/CPI in 2005

= 30000/1.68

=$17,857.14

Thus, from the given data 1972 job paid LESS in nominal terms (7200 < 30000) and LESS in real terms (17,244.88 < 17,857.14) than the 2005 job.

6 0
3 years ago
Other questions:
  • The person or company that borrows money and signs a promissory note payable is the
    11·1 answer
  • Which of these types of buildings would not be found on the plaza principal?
    7·1 answer
  • The demand for flip phones has drastically reduced, and there are only a few consumer electronics companies selling them at extr
    15·1 answer
  • Accounts that are increased with a debit include A : revenue. B : assets. C : equity. D : liability.
    11·1 answer
  • Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sale
    10·1 answer
  • Why is it important to be fiscally responsible?
    12·1 answer
  • In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds availabl
    15·1 answer
  • Suppose a $3 per-unit tax is placed on this good. The tax causes the price paid by buyers to
    9·1 answer
  • Whereas ______________ are willing to violate procedures and operate outside normal channels, ______________ gather hard data an
    5·1 answer
  • Threadless receives immediate customer feedback on specific promotions through online orders. What type of control does this rep
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!