Answer:
What is the expected dividend yield for Portman's stock today?
d. 6.40%
Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?
a. $0.52 per share
Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900
Explanation:
cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%
dividend in one year = $1.68 x 120% = $2.016
intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50
expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%
Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244
Answer:
The correct answer is letter "C": Every January, the stock market earns above-normal returns.
Explanation:
Inside the Efficient Market Hypothesis or EMH, we can find the term "weak from efficiency" that states past price action do not influence the current stock price or it is not useful in order to predict future price movements. According to the same concept, the use of technical analysis or the suggestions of financial advisers is useless.
In that sense, option letter "C" indicates that <em>every January the stock market earns an above-normal return</em>, which clearly reflects that there is a repeated pattern in the stocks affecting their price during that specific month, something impossible to take place according to what "weak from efficiency" establishes.
The total annual dividend received is $60.
The computation of the total annual dividend is as follows:
Given that
There are 75 shares.
And, the quarterly dividend is $0.20.
So,
The annual dividend should be
= $0.20 × 4 quarters
= $0.80
Now the annual dividend is
= 75 shares × $0.80
= $60
Therefore we can conclude that the total annual dividend received is $60.
Learn more about the dividend here: brainly.com/question/13535979
The FDIC stands for Federal Deposit Insurance Company.
By raising the limit on insured losses the FDIC helps stabilize the system by instilling confidence.
If the consumer knows that their savings accounts are protected up to $250,000 they will be encouraged to spend money during a time of crisis.
Because of the increased limit, there is less probability that there would be something called
"a run on the bank."
During an external information search, a consumer is most likely to enlarge his search and consider more alternative brands when the<u> perceived risk of the </u><u>product or service </u><u>to be purchased increases.</u>
This is further explained below.
<h3>What is <u>
a product</u>?</h3>
Generally, A physical thing that is offered for sale for purchase, attention, or consumption is referred to as a commodity.
On the other hand, an intangible item that comes from the work of one or more humans is referred to as a service.
In conclusion, When a customer perceives an increased level of risk associated with the product or service that will be bought, he is more likely to broaden the scope of his search and take into consideration a greater number of alternative brands.
This occurs during an external information search.
Read more about <u>product </u>
<u>brainly.com/question/22852400</u>
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