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
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%

You might be interested in
50 POINTS AND BRAINLIEST! QUICKLY!! END OF YEAR PROJECT!!!
kenny6666 [7]
Hello!

<span>The check amount is recorded in the check Stub

</span><span>I subtract the check amount from the Balance forward

</span><span>The amount you record on the check is referred to as Debit

</span><span>In order to cash your check you must Endorse it

</span><span>When buying clothes, I use a Check instead of paying cash.

</span><span>If the bank makes a mistake on your account, they will Credit your account for the amount of the mistake.

</span><span>A mistake was made when writing my check, therefore, I must void it

</span><span>I sign the Signature line to validate the check

</span><span>When filling in the amount line I fill in the remaining space with a line.

</span><span>The account number is the lower left-hand corner of the check.

The answers are the bold words

Hope this helps!</span>
5 0
3 years ago
Read 2 more answers
Will Jones, LLP is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $50
xxMikexx [17]

Answer:

The company pays $ 500 yearly fee to use Mega Tax Software which is record as fixed costs. Fixed costs do not differ with the variation in the manufacturing levels. Conversely, the fixed cost per unit declines as manufacturing increases, as the same fixed costs are extent over more units. Also the fixed costs per unit rises as the production decreases. Therefore when the production level increased from 300 units to 500 units, the fixed costs per unit reduced and since the variable cost per unit is the same at $ 10 per unit regardless of the levels of production, the total cost per return declines from $ 11.67 to $ 11.

7 0
3 years ago
Which of the following serve as intermediaries channeling the savings of individuals, businesses and governments into loans and
finlep [7]

Answer: Financial institutions

Explanation: Financial institutions, sometimes referred to as banking institutions works as a  intermediary in financial markets. These institutions offers deposit facilities to general public in exchange of interest on such deposits. Then these institutions lend the deposited amounts to those in need for investments and funds and charge interest to them.

Thus, we can conclude that option A is correct.

8 0
4 years ago
when an inventor gets a patent for his work,it means the goverment will buy a specific amount of the invention
zaharov [31]
I'm guessing this is True or False
If so, the answer is False.
5 0
3 years ago
Mutual funds allow the common investor without much initial capital to be able to a strategy not easily employable among stocks
Fed [463]

Answer:

diversify  

Explanation:

A mutual fund refers to the professionally managed investment group that funnels money for the acquisition of financial instruments from several investors.

Relative to direct investment in individual financial instruments, mutual funds have pros and cons. The main benefits of mutual funds are providing efficiencies, a better level of diversification, providing liquidity, and being proceeded by institutional investors. On the down side, the creditors will pay different costs and expenses in such a mutual fund.

Mutual funds ' main types comprise open-ended securities, investment vehicles with groups, and closed-end assets. Exchange-traded funds (ETFs) are open-end securities or funds with investment groups listed on markets. Many close-ended securities often mimic exchange-traded funds, as they can be exchanged on stock markets in order to enhance liquidity.

3 0
3 years ago
Other questions:
  • Campbell's soup company continues to add new food products to its product line under the campbell's brand name. this is known as
    12·1 answer
  • Willow Wanderer Cameras Inc. reported the following results for the year ending October 31, 20Y9: Retained earnings, November 1,
    6·1 answer
  • Your digital footprints grow larger online every time you?
    11·1 answer
  • A store that sells a huge variety of one type of product, such as books, in order to dominate the market for that product is cal
    7·1 answer
  • If the law of increasing opportunity costs is operable, and currently the opportunity cost of producing the 101st unit of good X
    15·1 answer
  • Wenlowe Company had the following income statement for the most recent year:
    9·1 answer
  • What rank do I have to be able to talk to people? I´ve worked my butt off and I still can't talk to people
    8·1 answer
  • 6%/12%Your grandmother is giving you $100 a month for four years while you attend college to earn your bachelor's degree. At a 6
    6·1 answer
  • Shareholders' equity reported on the balance sheet is most likely to differ from the market value of shareholders' equity becaus
    7·1 answer
  • An employer hiring in a competitive labor market should hire additional labor as long as Multiple Choice the wage rate is less t
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!