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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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Networking skills,organization skills, listening skills, and speaking skills hope that helps
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3 years ago
Read 2 more answers
Should eyewitness testimony be allowed in the courtroom? Write at least three paragraphs discussing your position.
Andrews [41]
(Paragraph 1) Should eyewitness testimony be allowed in the courtroom? No but at the same time yes. There are many reasons why they should but shouldn't. It is a risk to their safety, some eyewitnesses are not liable, they could be paid off but at the same time their testimony could help win a case. (Paragraph 2) Depending on a crime, the eyewitness safety could be in danger. If the case was against a member of a gang or mafia. They could send someone after that witness. This is reason why we have the Witness Protection Program. If they testify they put their lives at risk. (Paragraph 3) Having a witness is a key thing to have. If you have a witness you are the one who most likely the one to win the case. In some cases you could have problems with the witness not being liable, getting paid off to not say anything or to lie. Or in most cases if they are confused they will not have them testify. Or they aren't straight on the details and keep changing the story that usually means they are lying on what they saw. Note: This is a summary. Add more and edit it to make it sound like something you would type.
7 0
3 years ago
A company wants to hire a model to appear in a television ad to promote its products. Prospective candidates have been asked to
Lyrx [107]

Answer:

Performance.

Explanation:

A company wants to hire a model to appear in a television ad to promote its products. Prospective candidates have been asked to audition so that the company can choose the most suitable person. The candidates are being subjected to performance test. Prospective candidate's acting abilities, personality will be judged and analysed accordingly. They will given a written script which they have to read and acted as well. Their acting, voice quality, body movements and personalty will be looked upon and analysed whether he or she is the best fit for their television ad or not.

8 0
2 years ago
The Widner Company manufactures two products: Stainless Serving Spoons and Stainless Serving Forks. The costs and revenues are a
Lady bird [3.3K]

Answer:

Option D. 5,400 9,000

Explanation:

The computation for the number of units produced is shown below:

But before that first determined the following calculations

Particulars             Spoons                  Forks

Selling Price          $150.00               $88.00

Less:

Variable cost per unit    $80.00          $42.00

Contribution margin

per unit                         $70.00            $46.00

Machine hour per unit    5                               3

Contribution margin

per machine hour                $14.00            $15.33

As we can see that the contribution margin per machine hour of the fork is greater so it should be the first utilized

For 9,000 forks, total machine hours is

= 9,000 × 3

= 27,000

Now no of the spoons produced would be

= 27000 ÷ 5

= 5,400

4 0
3 years ago
A product sells for $30 per unit and has variable costs of $15.50 per unit. The fixed costs are $1,015,000. If the variable cost
Maslowich

Answer:

70,000 units

Explanation:

Selling price per unit = $30

Variable cost per unit = $14.60

Contribution margin per unit = $30 - $14.60 = $15.40

Fixed cost = $1,078,000

Break-even point in units = Fixed cost ÷ Contribution margin per unit = $1,078,000 ÷ $15.40 = 70,000 units

Therefore,  break-even point in units would 70,000 units.

3 0
3 years ago
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