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
BaLLatris [955]
3 years ago
7

he next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4.

5 percent forever. If the stock currently sells for $37 per share, what is the required return?
Business
1 answer:
Elan Coil [88]3 years ago
8 0

Answer:

The Required Return is 10.82%.

Explanation:

The Dividends Model for the Constant Growth is given below:

                                          P0 = D1 / (Ke - g)

Arranging the above equation for "Ke", that is the Required Return:

                                      ⇒ Ke = (D1 / P0) + g

Putting Values and we get:

Required Return = Ke = (2.34 / 37) + .045 = .1082 = 10.82%.

Thanks!

You might be interested in
Darlene owns stock in several different companies. When she received a dividend check from her Avatar stock, she endorsed the ch
statuscvo [17]

Answer:

The answer is  False

Explanation:

Darlene will be the one assessed tax on dividends,  tax if charged in daughter's account will result in double taxing

7 0
3 years ago
Trade between the middle east brought the black death to europe because
ss7ja [257]

Answer:

Trade between the middle east brought the black death to europe because some of the trading ships passing the trade route was infested with rats that carried the plague.

Explanation:

The Black death also referred to as the bubonic plague was pandemic that was brought about by trade between the Middle East and Europe on the silk road. This plagues killed over 30 to 50 million people when it started from the year 1346 to 1352.

The black death was caused by a Enterobacter bacteria called Yersinia pestis which is present in the vector flea called Oriental rat flea carried by host which were rodents(rats). The rats infested the trading ships from Genoese who came to Europe via Italy. The Black death spread from Asia, down to Europe, Africa and finally the Middle East.

This disease spread from animal to human as well as human to human contact. The characteristics symptoms of this disease includes the presence of boils on the body of the sick that turned sores and the sores eventually became black, hence the name black death. Other symptoms included warm, swollen lymph nodes in the groin or armpit, very high fever, headaches, muscle pain after which death was the end result for some people.

7 0
4 years ago
Read 2 more answers
Explain why entertainers and athletes can charge so much for their events.
Usimov [2.4K]
Because they are most likely a professional and have knowledge of the specific activity from either college or doing it Him/Herself what they're doing when it comes to the aspect in which they are teaching training etc.Therefore they charge extra from prior knowledge of the activity.
3 0
4 years ago
The under-supply problem associated with free-riders and goods can be solved by making the good or service more .
Cloud [144]

the under-supply problem associated with free-riders and public goods can be solved by making the good or service more excludable

What is public goods ?

A public good is a good that is both non-excludable and non-rivalrous in economic terms. Users cannot be denied access to or use of such goods for failing to pay for them. Furthermore, use by one person neither prevents nor reduces the availability of others.

A public good is a commodity or service that is made available to all members of a society in economics. These services are typically administered by governments and funded collectively through taxation. Law enforcement, national defense, and the rule of law are examples of public goods.

Defense, lighthouses, streetlamps, and clean air are all examples of public goods. They are all non-exclusive and non-rivalrous in terms of the public good.

To know more about public goods follow the link:

brainly.com/question/25498461

#SPJ4

5 0
2 years ago
Jan and Kyle sign a contract that provides if a dispute arises, they will submit to arbitration. A dispute arises, but before it
elena-14-01-66 [18.8K]

Answer:

D. Order the parties to arbitrate

Explanation:

Under an arbitration agreement, the parties to such a contract mutually agree to settling future disputes outside court.

Like every contract, such a contract is legally binding and the terms cannot be revoked by one of the parties later. The parties are bound by arbitration in such cases, as is mutually agreed initially.

As per the facts of the case, such an arbitration agreement has been entered into by Jan and Kyle, wherein it was mutually agreed to settle outside court, in the event of a dispute. When the said dispute arose, Jan filed a suit against Kyle.

In such a scenario, the court will likely D. Order the parties to arbitrate.

6 0
4 years ago
Other questions:
  • As a business person planning to open a new small business, you know that the business plan should not contain
    13·1 answer
  • Choosing stocks by searching for predictable patterns in stock prices is called ________.A. fundamental analysisB. technical ana
    14·1 answer
  • The balance in a company's Cash account on August 31 was $19,700, before the bank reconciliation was prepared. After examining t
    10·1 answer
  • What does inflation mean?
    14·2 answers
  • In recent years ecotourism _____
    11·1 answer
  • How does information technology bring employees closer to upper management?
    15·2 answers
  • A substitute is standing at the halfway line waiting to enter the match at the next stoppage of play. the ball has gone over the
    8·1 answer
  • Designing the business portfolio of Nike?
    11·1 answer
  • Which step is the most important step in the decision making process?.
    9·1 answer
  • if the marginal product of capital is less than the rental rate of capital, the firm should rent more capital.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!