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
KiRa [710]
3 years ago
8

Columbus Manufacturing's stock currently sells for $ 23.57 a share. The stock just paid a dividend of $2 a share (i.e.,D0=2). Th

e dividend is expected to grow at a constant rate of 6 % a year. What is the required rate of return on the company's stock? Express your answer in percentage, and round it to two decimal places, i.e., 13.54, for example for 0.1354)
Business
1 answer:
Rina8888 [55]3 years ago
6 0

Answer:

Required rate of return is 14.99%

Explanation:

Given:

Price of stock (Po)= $23.57

Dividend (Do) = $2

Growth rate (g)= 6% or 0.06

Using dividend growth model to calculate required rate of return:

r=\frac{d_{0}\left ( 1+g \right )}{P_{o}}+g

Substituting values in above formula, we get:

r = r=\frac{2\left ( 1.06 \right )}{23.57}+0.06

 = 0.1499 or 14.99%

Therefore, required return of company's stock is 14.99%

You might be interested in
The growth of industrial manufacturing affected skilled tradesmen by:.
alina1380 [7]

answer:

removing control of their labor and their sense of independence.

8 0
2 years ago
The average cost of a single sales call to a potential b2b buyer in the u.s. is expensive and could cost about:
Colt1911 [192]
<span>A single sales call to a potential B2B buyer in the United States could cost about $400. A B2B sales call is a business to business sales call. The closing of a sale can be hit or miss, but it is said that any contact with the buyer can be helpful later.</span>
5 0
3 years ago
I want to start a new business. Ideas?
Aleks04 [339]
1.) Watch the news and find out a problem that everyone needs the solution to like a geologist national research business. Or something people don't have a specific catagory for or is in the random stuff cabinet
 
2.) Think about it and see what you can do to make it spectacular. 

3.) Think of a name for it.

4.) Get it pattened (I don't know how to spell it sorry)

5.) Make a card for it and tell people about it. For the child abuse example. (Sprinkle a little dramatic facts  then tell them what you do to help stop that just to get people intrested and wanting to help.)

6.) Then you can take it from there to get more and more people into your business.

To number 5, I forgot what that trick is but it is when you scare someone by something you told them then dis alarming them by telling the good side. You can basically get anyone to do or say yes to anything you want.

And you can use my geologist catagory idea because these days they really need them. Also my mom said that if your in college and you study for the geologist requirments thing ( I don't know what they call them I think coarses)
They pay you even when your not finished college just to work for them and she also stated why else would they randomly add geology in schools now and they make pretty good money!

Sorry for it being so long but I get excited over the smallest thing and I hope I helped you lots!! And Gooood Luck!!!

 
5 0
3 years ago
Halestorm Corporation’s common stock has a beta of 1.20. Assume the risk-free rate is 4.5 percent and the expected return on the
Lemur [1.5K]

Answer:

Ke = Rf  + β(Rm – Rf)

Ke = 4.5 + 1.20(12-4.5)

Ke = 4.5 + 9

Ke = 13.5%

Explanation:

Cost of equity is equal to risk-free rate plus market risk premium. Market risk premium is beta multiplied by risk premium. Risk premium is market return minus risk-free rate.

8 0
3 years ago
Which best describes a way people can use personal loans? to buy a house to buy a car to pay for college to pay for groceries.
Bas_tet [7]

The best way people can use their Personal loans is to buy or pay for groceries. As there are other separate loans for the things like car, home and pay for college.  

<h3>what is a personal loan?</h3>

A loan is issued for non-essential purposes, usually to a person with a good credit score who is not required to submit collateral to back up the loan.

A personal loan can be utilized for practically any reason, including settling credit card debt, home upgrades, and large purchases.

Thus option D is correct.

For further details about the personal loan refer to this link:

brainly.com/question/19106746

4 0
2 years ago
Read 3 more answers
Other questions:
  • Consider a household consisting of four college friends. The friends have made a commitment to live together for the next five y
    11·1 answer
  • Suppose the spouse of the primary earner in the household is considering joining the labor force. The spouse currently cares for
    11·1 answer
  • In the past, how have you approached problems that you received with little or inadequate instruction/guidance?
    8·2 answers
  • Which of the following is NOT a requirement for becoming a police officer?
    12·2 answers
  • Which of these outcomes become more likely for someone with strong personal finance skills? Check all that apply.
    5·1 answer
  • A contingent liability is:Multiple ChoiceAlways of a specific amount.An obligation arising from the purchase of goods or service
    13·1 answer
  • Sodium Inc. borrowed $175,000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much inter
    11·1 answer
  • Sinh viên hãy chứng minh rằng “Việc triển khai thực hiện mục tiêu chiến lược dài hạn về doanh thu của ABC đến năm 2025” có liên
    12·1 answer
  • The stages of formation of the Psalter may be compared to a(n) _______ .
    11·1 answer
  • The ________ approach states that the exchange rate is determined by the supply and demand for national currency stocks, as well
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!