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Oksana_A [137]
3 years ago
12

A particular stock sells for $43.20 share and provides a total return of 11.6 percent. The total return is evenly divided betwee

n the capital gains yield and the dividend yield. Assuming a constant dividend growth rate, what is the current dividend per share?A. $2.24B. $2.37C. $2.34D. $2.51E. $2.47
Business
1 answer:
LuckyWell [14K]3 years ago
5 0

Answer:

B. $2.37

Explanation:

The current dividend per share will be calculated using formula:

Po = [Do (1 + g) ] / (r - g)

Do = Po (r - g) / (1 + g)

Po = Current Share price

Do = Current dividend

r = Rate of return

g = growth of dividend

Do = ($43.20 *  (0.116 - 0.058)   / 1.058

Do = $2.37 per share

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uysha [10]

Answer:

Private property and protection of property rights are important because it helps the economy deal with the issue of resource scarcity by ensuring its use is controlled through ownership. The private owner of a resource is expected to act in their self-interest to develop products

3 0
4 years ago
Identify which of the following statements is true. A. A corporation is a separate taxpaying entity that must file a tax return
Mila [183]

Answer:

All of the above are true.

Explanation:

The following statements about a corporation is true.

<u>1. A corporation is a separate taxpaying entity that must file a tax return annually. </u>

A corporation is a legal entity that is separate and distinct from its owners. they can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, <u>and pay taxes annually just like individuals.</u>

<u>2. A newly formed corporation must select its basic accounting method. </u>

A newly formed corporation will have to choose its accounting method. Accounting method refers to the rules a company follows in reporting revenues and expenses. The two primary methods are accrual accounting and cash accounting.

3. The terms​ "regular corporation" and​ "C corporation" are synonymous.

The C corporation is the <u>standard (or default) corporation under IRS rules.</u> The S corporation is a corporation that has elected a special tax status with the IRS and therefore has some tax advantages, hence cannot be said to be regular but has obtained a special status by election.

7 0
3 years ago
The Solow model predicts that, over time, real GDP in developing economies could potentially converge to the same level of real
LekaFEV [45]

Answer: c. Over time, developing economies become richer, and developed economies become poorer, until they reach the same level of wealth.

Explanation:

The Solow model which is a neoclassical framework focuses on long term Economics and does indeed speak to the convergence of the Real GDPs of Developed Countries with that of Developing countries.

However, of all the options listed, Option C goes against the model because convergence cannot happen if the Developed Countries keep getting richer while Developing countries keep getting poorer. Should that happen, they will never get to the same level of wealth and indeed might end up on opposite sides of the wealth spectrum with Developed Countries being extremely wealthy and Developing countries being extremely poor.

For convergence to happen, the conditions in A, B and D are preferable as they can indeed bring about the said convergence.

7 0
4 years ago
Which career would be a good fit for someone whose MBTI results list her as a
ycow [4]

Answer:

A

Explanation:

6 0
3 years ago
You are buying and reselling items found at your local thrift shop. You found an antique pitcher for sale. If you need a 27% mar
GrogVix [38]

Answer:

The most you can pay for the pitcher is $17.32

Explanation:

A mark up is a percentage that is always applied on the cost to come up at a required gain over cost. The cost is always taken to be 100% when apply a mark up on cost.

If the mark up is of 27% and cost is 100% then a selling price of 22 will be equal to cost + markup.

Let cost be x.

Selling price = Cost + Mark up

22 = 100% * x + 27% * x

22 = 1x + 0.27x

22 = 1.27 x

22/1.27 = x

x = $17.3228 rounded off to $17.32

7 0
4 years ago
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