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sweet-ann [11.9K]
3 years ago
12

The current dividend yield on CJ's common stock is 1.89 percent. The company just paid a $1.23 annual dividend and announced pla

ns to pay $1.37 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock?
Business
1 answer:
belka [17]3 years ago
8 0

Answer:

The required rate of return on this stock is 13.27%

Explanation:

The computation is shown below:

First, we have to determine the dividend growth and then the growth rate. Afterward, the final answer will come

Dividend growth rate = Next year dividend - current year dividend

= $1.37 - $1.23

= $0.14

Now the growth rate would be equal to

= (Dividend growth) ÷ (current year dividend)

= ($0.14) ÷ ($1.23)

= 11.38%

Now add the dividend yield to the growth rate

So, the required rate of return would be

= 11.38% + 1.89%

= 13.27%

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Living most of his life in Britain during the Industrialization period, Karl Marx noted that the only party who is benefiting from capitalism is Bourgeoisie (Those who own means of productions) not the Proletariat (workers who sell their labor for wages) as he looked at the society which was in contradiction, that is " In the country so rich, how could so many people be so poor ". He in that context blamed capitalism for creating alienation.

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He defined Alienation as '<em>the experience of isolation and misery resulting from powerlessness</em>'. Further, Karl Marx also noted that Proletariat (workers) are nothing more than a source of labor to the capitalist as they can be fired and hired at the will of those capitalists. And said that Capitalism has also made human a machine as they cannot learn much from it because they do sets of repeating similar tasks every day as from day 1 which is also nowadays referred to specialization (getting good at one skill) and results in dissatisfaction of workers and increase their powerlessness (the feeling that they have little or no control over their situation).

There are 4 types of alienation resulted from capitalism.

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  4. Alienation from the act of working: Since workers don't have any say in how to make, what to make, they are not satisfied with the way what they work and have become machines.
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Based on the explanation below, the amount that will be entered in the debit column of the customer's ledger file is D. $1,200.

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In the book of the seller, the $1,200 is entered in the debit column of the customer's ledger file immediately after the customer purchases materials of $1200.

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Therefore, $1,200 is entered in the debit column of the customer's ledger file.

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