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
shutvik [7]
4 years ago
9

A firm pays a $11.80 dividend at the end of year one (D1), has a stock price of $145, and a constant growth rate (g) of 4 percen

t. Compute the required rate of return (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
lorasvet [3.4K]4 years ago
3 0

Answer:

The required rate of return is 12.13%

Explanation:

According to the DDM model, the formula for a price of a stock is

P=D1/R-G

D1= Year end dividend

P= Stock price

R= required rate of return

G= Growth rate of stock

SO we will input the values given to us in the question, in this formula.

145=11.80/(R-0.04)

145R - 5.8=11.80

145R= 17.6

R=17.6/145

R=0.121

R= 12.13%

You might be interested in
Q 2.29: Val-Tek has current assets of $1,700,000 and current liabilities of $900,000. If they pay $100,000 owed to a creditor, w
irina1246 [14]

Answer:2 : 1

Explanation:

current ratio = current asset/current liability

If current liability was $900,000 less $100,000= $800,000

Therefore the current ratio=

$1,700,000/$800,000 =

2 : 1

3 0
4 years ago
Read 2 more answers
Topik is a product that is sprayed on thinning hair and makes the hair appear thicker. The manufacturer considers its potential
Alik [6]

Answer:

(C) target market

Explanation:

The group of people for which a product is designed and aimed to is the product's target market. In this case, Topik is a product that aims to sell to blue-collar workers who earn less than $30,000 per year, are divorced, and who like to think of themselves as weekend athletes, which is the product's target market.

The answer is (C).

4 0
4 years ago
Hyper-Tech Enterprises manufactures mechanical parts used in air conditioning and heating units.The company employs over 300 wor
ruslelena [56]

Hyper-Tech's top executives are considering fighting the unionization efforts. The statement which if TRUE, best supports the argument that Hyper-Tech should contest the union's right to an election is

  • D) The process outlined at Hyper-Tech for filing employee grievances differs from the grievance procedures at other firms in the same industry

<h3>Hyper-Tech </h3>

It was founded in 2008. The company's line of business includes providing various business services.

In conclusion, we can conclude that the correct answer is as given above.

learn more about Hyper-Tech from here: brainly.com/question/14343056

3 0
2 years ago
Which savings account will earn you the most money?
Masja [62]

Answer:

One that earns Daily

Explanation:

5 0
3 years ago
Yucca Co. updates its inventory periodically. The company's beginning inventory was $4,860 and purchases were $10,080 during the
erastovalidia [21]

Answer:

the cost of goods sold is $5,940

Explanation:

The computation of the cost of goods sold is shown below:

As we know that

Cost of goods sold is

= beginning inventory + purchase made - ending inventory

= $4,860 + $10,080 - $9,000

= $5,940

Hence, the cost of goods sold is $5,940

We simply applied the above formula so that the correct value could come

And, the same is to be considered

8 0
3 years ago
Other questions:
  • The World Bank is an example of a(n) ____, supported by industrialized nations, including the United States.
    7·2 answers
  • Jana completed an informational interview with a preschool teacher in her area. She wants to write a thank-you letter. What shou
    15·1 answer
  • Farm Fresh, a supermarket in Oregon, was criticized by the community for its use of plastic bags. In view of the concerns raised
    9·1 answer
  • Bell’s database has been hacked and sensitive information has been compromised to its competitors leading to loss suffered by it
    13·2 answers
  • Which of the following is not an interest earning account?
    11·1 answer
  • As the number of urban areas grew in the state in the late nineteenth and early twentieth centuries, the management of local aff
    5·1 answer
  • Zeke shares the company’s organizational chart with employees during an all-staff meeting
    11·1 answer
  • McKean Corporation authorized 500,000 shares of common stock in its articles of incorporation. On May 1, 2019, 100,000 shares we
    7·1 answer
  • Wade Company estimates that it will produce 6,000 units of product IOA during the current month. Budgeted variable manufacturing
    6·1 answer
  • The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.10 per share on its stock. The dividends are expected to grow at
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!