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3 years ago

What makes australian economy so prosperous?

Business

1 answer:

Setler79 [48]3 years ago

3 0

Capitalist economic policies caused Kenya's economy to prosper.

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Joker stock has a sustainable growth rate of 7 percent, ROE of 10 percent, and dividends per share of $1.20. If the P/E ratio is

belka [17]

Answer:

P/E ratio = Market price per share

Earnings per share

15 = Market price per share

Market price per share = 15 x $4 = $60

Growth rate = Retention rate x ROE

0.07 = Retention rate x 0.10

0.07 = Retention rate

0.10

Retention rate = 0.7 = 70%

Dividend pay-out ratio = 100% - 70%

Dividend pay-out ratio = 30%

Earnings per share = 100/30 x $1.20 = $4

Explanation:

In this case, we will apply the formula of price-earnings ratio, which is market price per share divided by earnings per share. The P/E ratio was given while the earnings per share is derived. The market price per share becomes the subject of the formula.

In order to determine the earnings per share, we need to obtain the retention ratio by applying the formula of growth rate. In this case, growth rate and ROE were provided in the question with the exception of retention rate. Thus, the retention rate is made the subject of the formula. Having obtained the retention rate, we will now obtain the dividend payout ratio which is 100% minus retention rate.

Then, we will obtain the earnings per share by dividing 100 by the pay-out ratio multiplied by the dividend per share.

8 0

3 years ago

The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years,

shtirl [24]

Answer:

e) $37.05

Explanation:

Using the dividend growth model, the value of a stock is the present value of the future dividends receivable discounted at the required rate of return . The required rate of return is given as 12%.

So we discount the year 3 dividend using the dividend growth model formula

P = D (1+g)/r-g

r- rate of return, g = growth rate

Present value of the future dividends:

PV of Year 1 = 1.55(1.015)m × 1.12^(-1)

= 1.4047

PV of Year 2 = 1.55 (1.015)(1.015) × 1.12^(-2)

= 1.27

PV of Year 3 (this will be done in two steps)

Step 1; PV (in yr 2) of year 3 dividend

= (1.55)(1.015)^2×(1.08)/(0.12-0.08)

=43.114

Step 2 : PV (in yr 2) of year 3 dividend

=43.114 × (1.12^(-2))

= 34.37

Best estimate of stock = 1.40 + 1.27 +34.37

= $37.05

Note

To discount the year 3 dividend, we use two steps. The first stp helps get the PV in year 2, and step 3 helps to take it further to the PV in year 0

8 0

3 years ago

Warren and shirley want to avoid having a balance due next year. which of the following can they do

Vinil7 [7]

Warren can submit Form W-4V to have taxes withheld from his Social Security is Warren and shirley want to avoid having a balance due next year.

Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.

3 0

2 years ago

2. Zach filed his individual federal tax return for the year ending December 31, 2018 on April 15, 2019 and he owed $25,000. As

jeyben [28]

Answer:

$26,125

Explanation:

[($25,000 x 0.005) x 9 + $25,000]

=$26,125

Zach owe $26,125 as of December 31, 2019 because he did not fail to file - he failed to pay. Hence he owes the 0.5% per month or part of a month failure to pay penalty plus the already outstanding tax amount of $25,000 that he owed.

4 0

3 years ago

3 uses of money supply

zalisa [80]

Answer:

Money serves as a medium of exchange, as a store of value, and as a unit of account.

7 0

3 years ago