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Anestetic [448]
3 years ago
11

Albright Motors is expected to pay a year-end dividend of $3.00 a share (D1 = $3.00). The stock currently sells for $30 a share.

The required (and expected) rate of return on the stock is 16 percent. If the dividend is expected to grow at a constant rate, g, what is g?
Business
1 answer:
Viefleur [7K]3 years ago
3 0

Answer: 14.4%

Explanation: The G that we are computing in this question is the sustainable growth rate, it is the growth rate that a company can attain and maintain without any problem.

we know that,

growth = (retention ratio)*(return on equity)

growth = (1- dividend payout ratio)*(return on equity)

growth\:=\:\left ( 1-\frac{3}{30} \right )*\left ( 0.16 \right )

growth = 14.4%

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IRR in Excel!(CHAPTER 9) Your company is considering a new project opportunity. It would immediately receive $200. In return, in
oksian1 [2.3K]

Answer:

12.44%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

cash floe in yer0 = 200

cash flow in year 1 = -80

cash flow in year 2 = - 70

cash flow in year 2 = - 60

cash flow in year 2 = - 40

irr = 12.44%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

3 0
3 years ago
13.10 Two risky gambles were proposed at the beginning of the chapter: Game 1: Win $30 with probability 0.5 Lose $1 with probabi
Lena [83]

Answer:

yes, it is true

Explanation:

the expected value of game 1 = ($30 x 0.5) + (-$1 x 0.5) = $15 - $0.50 = $14.50

  • since the expected value of game 1 is very high compared to the risk of losing, then most of us would probably want to play that game.

the expected value of game 2 = ($2,000 x 0.5) + (-$19,000 x 0.5) = $1,000 - $9,500 = -$8,500

  • on the contrary, since the expected value of game 2 is negative and the risk of losing a large amount is very high, very few people will be willing to play game 2 without being paid to do so.
8 0
3 years ago
At December 31, 2021 and 2020, Cow Co. had 117,000 shares of common stock and 6,700 shares of 3%, $100 par value cumulative pref
laila [671]

Answer:

$5.55

Explanation:

Calculation to determine what the basic earnings per share was

Using this formula

EPS=Net income-(Value cumulative preferred stock percentage*Net income)/Shares of common stock

Let plug in the formula

EPS=$670,000-(3%*$670,000)/117,000

EPS=$670,000-$20,100/117,000

EPS=$649,900/117,000

EPS=$5.55

Therefore For 2021, basic earnings per share was: $5.55

8 0
3 years ago
Bob returns goods bought on credit from Tariq, which ledger a/c entries record this in Tariq's book?
Elza [17]

Answer:

<u>D. Purchase returns Bob</u>

Explanation:

  • Purchase refers to payment by credit
  • So, it is either B or D
  • D sounds like the more sensible option
7 0
2 years ago
Read 2 more answers
Fixed costs remain constant at​ $400,000 per month. During highminusoutput months variable costs are​ $320,000, and during lowmi
vladimir2022 [97]

Answer:

The answer is  B. ​$45.00 per​ hour; $120.00 per hour

Explanation:

highminusoutput

Fixed costs       400000/16000= $25

variable costs   320000/16000= $20

Total                                           <u>=$45</u>

<u />

lowminusoutput

Fixed costs        400000/4000  = $100

variable costs    80000/4000  = $20

Total                                           =<u>$120</u>

3 0
3 years ago
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