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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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I didn't sign up for this and I'd like my money back and to delete this account
prohojiy [21]

Answer:

Simply ask a lot of innapropiate questions and the moderators will kick u out! Have fun!

Explanation:

6 0
2 years ago
Read 2 more answers
In a criminal tax case, Darth Vader was charged with several counts of tax evasion and filing a false income tax return, stemmin
Vitek1552 [10]

Answer:

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It can be inferred after that that that the Jedi has some existing gain / retained earnings or not.

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7 0
3 years ago
Where do you think the biggest hole is in the registration statement?
Alex17521 [72]
In the United States, a registration statement is a set of documents, including a prospectus, which a company must file with the U.S. Securities and Exchange Commission before it proceeds with a public offering.

Not that sure though
Best luck with your studying
8 0
2 years ago
Incline Company generated $4,900,000 in revenue selling 4,025 units of its only product. Each unit has a contribution margin of
Hatshy [7]

Answer:

23%

Explanation:

The computation of the contribution margin ratio is shown below:-

Selling price per unit = $4,900,000 ÷ 4,025 units

= 1217.39

Contribution margin ratio = Contribution margin ÷ Selling price

= $280 ÷ 1217.39

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Therefore for computing the contribution margin ratio we simply divide selling price by contribution margin.

6 0
2 years ago
Proposal preparation is completed by Select one: a. a large team for a simple project. b. a single person when proposing a multi
castortr0y [4]

Answer:

d. one or more people depending upon the requirements of the proposal.

Explanation:

A proposal can be defined as a plan or suggestion which are formally written to present an idea to an individual or organization for consideration.

Proposal preparation is completed by one or more people depending upon the requirements of the proposal.

In order to prepare a good proposal, it is very important to make it as formal as possible. The content of the proposal is strictly based on what the initiators wants to do or achieve, as well as how they wish to achieve.

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7 0
3 years ago
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