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Vadim26 [7]
3 years ago
12

A firm just paid a dividend of $6 per share. Next year the dividend is expected to grow 8 percent, thereafter 10 percent forever

. The present share price is $36. Calculate the required rate of return on the firm's equity. Express the response in decimal format
Business
1 answer:
lawyer [7]3 years ago
3 0

Answer:

26%

Explanation:

MV=Do(1+g)/(Ke-g)

Where MV is market value=$36

Do is current dividend per share=$6

g is growth rate=8%

Ke=?  

By putting above values we get;

36=6(1+.08)/(Ke-.08)

36Ke-2.88=6+.48

36Ke=2.88+6+.48

Ke=9.36/36

Ke=26%

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belka [17]

The dApp that the author describes as a set of smart contracts that stores data on a home-listing Blockchain is <u>bUber.</u>

<h3>What is a Blockchain dApp?</h3>

dApp means decentralized applications.  They are digital applications running on the Blockchain network.  They rely on many computers using smart contracts without third party control but computer technologies.

The benefits of dApps include the following:

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Thus, the he dApp that the author describes as a set of smart contracts that stores data on a home-listing Blockchain is <u>bUber.</u>

Learn more about dApp Blockchains at brainly.com/question/15732972

6 0
2 years ago
Mofro's Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year,
azamat

Answer:

The change in stockholders' equity was of 150.000

Explanation:

With the amount of sales and expenses of the year, the company had a profit of 200.000, if it pay dividends by 50.000, it means that the company  retained earnings for 150.000, this is the change in the equity of the company and keep in cash in the total assets.

8 0
2 years ago
1. Describe the effect each action below will have on the money supply. Explain your reasoning.
makkiz [27]
The Fed sells $5 billion worth of T-bonds on the open market.
5 0
3 years ago
Economists define potential income as the level of income that: Group of answer choices an economy is capable of producing witho
andrey2020 [161]

Answer:

an economy is capable of sustaining or producing without generating higher inflation.              

Explanation:

In simple words, potential economy refers to that level of output or GDP that an economy can produce and sustain over  along term with its given level of inflation and resources available.

Potential income has to be maintained over a long term and is based on the assumption that all of the resources available, whether human or natural, will be utilized as according to their maximum utility power.    

6 0
3 years ago
Beatrice invests $1,410 in an account that pays 3 percent simple interest. How much more could she have earned over a 4-year per
mixas84 [53]

Answer:

$7.77

Explanation:

The answer would be the difference between compound and simple interest

Simple interest = principal x time x interest

$1,410 x 0.03 x 4 = $169.20

Compound interest = future value - present value

future value = Principal ( 1 + interest)^n

$1,410 ( 1.03)^4 = $1586.96

$1586.96 -$1,410 = $176.97

Difference = $176.97 - $169.20 = $7.77

4 0
2 years ago
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