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
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%

You might be interested in
What was the opening price of Coca-Cola on Jan 1, 1962?
agasfer [191]

Answer:

I'm not 100 %sure but but I think 49 cents

3 0
3 years ago
Read 2 more answers
6. How long does it take for the average new drug to be tested and approved for
tankabanditka [31]

Answer:

3 to 5 years.....only.....

5 0
3 years ago
You are preparing a presentation on networking for a professional development seminar that your company is hosting for its emplo
Stells [14]

Answer:

  1. c. Any pattern, particularly with audience involvement
  2. a. Warm, pleasant, and open

Explanation:

As this is a follow-up presentation, it would be best to find out how the participants have fared in relation to the subject since the last presentation. For this reason, the main focus is audience involvement so any patter is fine so long as audience participation is emphasized.

The delivery style that would best work here is a warm, pleasant and open one. This would encourage audience involvement and it can be more easily pulled off because you have good relationships with all the registered participants.

5 0
3 years ago
Ned is a head of household with a dependent son, Todd, who is a full-time student. This year Ned made the following expenditures
UNO [17]

Answer: D. $600 included in Ned's medical expenses

Explanation:

The amount that Ned can include in his itemized deductions will be the $600 that's included in Ned's medical expenses.

It should be noted that the medical expenses will be under the itemized deductions. On the other hand, the other options will be under the miscellaneous itemized deductions. Therefore, the correct option is D.

5 0
3 years ago
Metal Products Co. has an inventory period of 53 days, an accounts payable period of 68 days, and an accounts receivable turnove
Rashid [163]

Answer:

71 days

Explanation:

Length of cash cycle = days of inventory on hand + days of sales outstanding - days of payables

days of sales outstanding = number of days in the period / receivable turnover

360 / 18 = 20

8 0
3 years ago
Other questions:
  • Grannyâs Restaurant sells apple pies. Granny knows that the demand curve for her pies does not shift over time, but she wants to
    15·1 answer
  • An author just signed a lucrative contract with a publisher that offers to pay her the amount of $600 at the end of year 9 when
    15·1 answer
  • On July 1, 2012, you purchase a $10,000 par T-note that matures in five years. The coupon rate is 8 percent and the price quoted
    14·1 answer
  • Two Brothers Moving prepared the following sales​ budget: Month Cash Sales Credit Sales March $ 19 comma 000 $ 5 comma 000 April
    5·1 answer
  • Robins typically lay four eggs. Four eggs allow the offspring to be well fed, whereas larger clutches may result in malnourished
    5·1 answer
  • The number of years a person that age is expected to have left to live on average is known as?
    7·2 answers
  • Frederick Taylor, the founder of scientific management, examined labor efficiency and effectiveness. His goal was to change: Gro
    12·1 answer
  • Which statement best explains why reporters should use mostly primary sources?
    14·1 answer
  • When the Federal government takes action to change taxes and spending to stimulate the economy such policy is:_________
    13·1 answer
  • 3. John Legend is looking for help to modernize the inventory systems at his company, Green Light. He is looking for information
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!