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docker41 [41]
3 years ago
8

Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $2.05 at the end of the year. Its div

idend is expected to grow at a constant rate of 6.50% per year. If Walter’s stock currently trades for $28.00 per share, what is the expected rate of return?
Business
1 answer:
Sonja [21]3 years ago
4 0

Answer:

The expected rate of return is 14.29%.

Explanation:

The re-arranged equation of DDM for Expected Rate of Return is given below:

Expected Rate = (Next Year Dividend / Current Stock Price) + Growth Rate

where

Next Year Dividend is Current Year Dividend * (1 + growth rate)

⇒ Next Year Dividend = 2.05 * (1 + 6.50%) = $2.18.

All the other values are given in the question. Simply put those values in the equation:

⇒ Expected Rate of Return = (2.18 /28) + .065 = .1429 = 14.29%.

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During the year a donor pledged $1,000,000 in funds to a not-for-profit private charter school. The school will receive the pled
KonstantinChe [14]

Answer:

D) It would not be recorded.

Explanation:

FASB means Financial Accounting Standards Board.

Financial Accounting Standards Board is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the US.

No matter what kind of restriction a donor might impose, FASB standards require nonprofits to report finances in a way that makes it clear which funds have donor restrictions and which funds come without donor restrictions. FASB standards are in three categories: “unrestricted,” “temporarily restricted,” and “permanently restricted.”

Unrestricted are those items that have no donor-imposed restrictions

Temporarily Restricted are those items that were received with a donor-imposed restriction that will be satisfied in the future (generally within one year)

Permanently restricted assets are funds of a nonprofit organization that must be used in designated ways and whose principal cannot be touched.

Since the school will recieve the pledge ONLY if it is able to raise $500,000 in funds over the next year, then the pledge would not be recorded

3 0
3 years ago
Less popular open source products are not likely to attract the community of users and contributors necessary to help improve th
daser333 [38]

Less popular open source products are not likely to attract the community of users and contributors necessary to help improve these products over time. This situation reiterates the belief that network effects are a key to success.

<h3>What are Network Effects?</h3>
  • The phenomenon known as the "network effect" describes how more individuals using a commodity or service results in a rise in value. An illustration of the network effect is the internet.
  • Since the internet was first only useful to the military and a small number of researchers, there weren't many users.
  • However, as more people had access to the internet, more material, information, and services were created by users.
  • More people were drawn to connect and transact business with one another as a result of website development and enhancement. A network effect resulted from the internet offering more value as traffic increased.

know more about Network effects

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6 0
2 years ago
What happens when the Federal reserve buys a treasury bond
alukav5142 [94]

Answer:

If the Federal Reserve buys bonds in the open market, it increases the money supply in the economy by swapping out bonds in exchange for cash to the general public. Conversely, if the Federal Reserve sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.

7 0
3 years ago
Which motivation theory might explain one’s need for financial security?
Ymorist [56]
Which motivation theory might explain one’s need for financial security? I would say humanistic theory of motivation because I would consider it a basic human right to have financial security.
7 0
3 years ago
Tri-coat Paints has a current market value of $41 per share with earnings of $3.64. What is the present value of its growth oppo
sammy [17]

Answer:

the present value of its growth opportunities (PVGO) is $0.56

Explanation:

The computation of the present value of growth opportunities is shown below:

= Price per share - (Earnings ÷ required rate of return)

= $41 - ($3.64 ÷ 9%)

= $41 - $40.44

= $0.56

hence, the present value of its growth opportunities (PVGO) is $0.56

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

4 0
3 years ago
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