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viva [34]
4 years ago
9

Home Services common stock offers an expected total return of 14.56 percent. The last annual dividend was $2.27 a share. Dividen

ds increase at a constant 2.1 percent per year. What is the dividend yield
Business
1 answer:
prohojiy [21]4 years ago
5 0

Answer:

Dividend yield=10.3%

Explanation:

Mv=Do(1+g)/(Ke-g)

MV=?

Do=2.27

g=2.1%

Ke=14.56%

Mv=2.27(1+2.1%)/(14.56%-2.1%)

MV=2.75/(12.46%)

MV=$22.1

Dividend yield=dividend per share/share price per share

Dividend yield=2.27/22.1

Dividend yield=10.3%

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Answer:

C. The firm is profitable because profit equals $27,500.

Explanation:

For computing the profit, the following formula should be used

Profit = Total revenue - total cost

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Total revenue = Number of units sold × market price

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And, the total cost would be

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Now the profit would be

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Answer:

we are not given any options, so I will show you the adjusting journal entry:

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