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Serga [27]
3 years ago
5

"The common stock of One Community Bank is currently selling for $30. The last annual dividend paid was $1.25 per share and the

required rate of return is 12.5 percent. What is the dividend growth rate
Business
1 answer:
Greeley [361]3 years ago
4 0

Answer:

The dividend growth rate is 8%.

Explanation:

Considering the stock is the one that has a constant dividend growth, we use the DDM approach for constant growth model. The constant growth model formula for price of a stock today is,

P0 = D1 / r - g

Where,

  • D1 is the dividend in the next period or D0 * (1 + g)
  • r is the required rate of return
  • g is the growth rate in dividends

Plugging in the available value,

30 = 1.25 ( 1+g) / (0.125 - g)

30 * (0.125 - g) = 1.25 + 1.25g

3.75 - 30g = 1.25 + 1.25g

3.75 - 1.25 = 30g + 1.25g

2.5 / 31.25 = g

g = 0.08 or 8%

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Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recen
Rus_ich [418]

Answer:

Instructios are listed below.

Explanation:

Giving the following information:

Laptops:

Selling price= $1,600

Cost per unit= $800

Sale mix= 40%

Tablets:

Selling price= $850

Cost per unit= $350

Sale mix= 60%

The estimated fixed costs for the current year are $2,498,600

A) Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)

Weighted average selling price= (1600*0.40) + (850*0.60)= $1,150

Weighted average variable expense= (800*0.40) + (350*0.60)= 530

Break-even point (units)= 2,498,600 / (1150 - 530)= 4,030 units

B) Laptops= 4030*0.40= 1,612 units

Tablets= 4030*0.60= 2,418 units

4 0
3 years ago
Most of the NFL teams are in the Eastern part of the United States.
arlik [135]
I believe they are, good job
8 0
3 years ago
M Corp. has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation days can
kicyunya [14]

Answer:

$27,600

Explanation:

Here, at the end of December 2021, M's unadjusted balance of liability towards vacation days are found to be 200 Days. And also provided that, on an average, each employee will earn $138 per day.

The amount of Liability for compensated absences in M Corporation = 200 Days * $138 per day = $27,600

3 0
3 years ago
Write an essay with the topic: Information logistics system is one of the major topics of interest to manufacturing and logistic
Harrizon [31]

Answer:

it 8s easy you need to divide the question in to points and write a paragraph on them

6 0
3 years ago
Tropical Tours reported revenue of $411,000 for its year ended December 31, 2021. Accounts receivable at December 31, 2020 and 2
myrzilka [38]

Answer:

$406,300

Explanation:

The computation of the cash collection is shown below:

Cash Collected From Customers is

= Ending account receivable  +Revenue For the Year - opening account receivable  

= $31,400 + $411,000 - $36,100

= $406,300

4 0
3 years ago
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