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Vadim26 [7]
3 years ago
7

Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 14 percent. You als

o know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
Business
1 answer:
mina [271]3 years ago
6 0

Answer:

$5.89

Explanation:

The computation of current dividend per share is shown below:-

(Dividend in One Year) ÷ Current Price

= 14% ÷ 2

= 7%

Dividend = Dividend yield × Stock currently sold per share

= 0.07 × $90

= 6.3

Current dividend per share = Dividend ÷ (1 + Dividend yield)

= 6.3 ÷ (1 + 0.07)

=  6.3 ÷ 1.07

= $5.89

Therefore for computing the current dividend per share we simply applied the above formula.

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Under U.S. GAAP, if the carrying value of a fixed asset was $50,000, the undiscounted expected future cash flows was $55,000, th
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Answer:

$0

Explanation:

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Use the following information to answer Questions 12 - 15. Below is selected data for Gertup Corporation as of 12/31/05: Gertup
alukav5142 [94]

Answer:

the cash that should be freed up is $267

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The computation of the cash that would be freed up is shown below:

As we know that

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= Cost of goods sold ÷ average inventory

12 = $14,800  ÷ average inventory

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4 0
3 years ago
The money stock in the economy is:​ a. ​the amount of wealth accumulating in the economy, such as currency and demand deposits.
Rus_ich [418]

Answer: The quantity of money circulating in the economy, such as money market mutual funds and stocks.

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Product compatibility is the capability of an item sold by one firm to function with another​ firm's _________ complementary sub
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Complimentary; multiproduct; network

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Product compatibility is the capability of an item sold by one firm to function with another firm's complimentary product.

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Product compatibility is simply the ability of a product to go along or function with another product.

A complimentary product is supposed to be compatible with the other compliment goods.

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4 years ago
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