Answer:
The current dividend is $5.23 per share
Explanation:
This return is divided equally between dividend yield and capital gains yield, in other words 7%each (14%/2)
Expected return=current dividend*(1+growth rate)/share price +growth rate
note the growth rate also represents capital gains yield
0.14=CD*(1+0.07)/80+0.07
0.14-0.07=CD*(1.07)/80
0.07*80=CD*1.07
5.6=CD*1.07
CD=5.6/1.07
CD=$5.23
Ultimately the current dividend is $5,23 per share a shown by solving the equation for current dividend above
Answer:
Sorry but I don't know what to make of this.
Explanation:
The required reserves are 50,000
i hope i helped and good luck :)
Managers should run a business ethically because it is the right thing to do.
They should do things ethically just because they are afraid of punishments and repercussions. Instead, they should understand the importance and moral value of acting ethically because they will set an example and then the employees will be ethical as well.