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
GaryK [48]
3 years ago
15

Suppose you know that a company’s stock currently sells for $66.70 per share and the required return on the stock is 12 percent.

You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. Required: 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:
Kobotan [32]3 years ago
8 0

Answer:

$3.78

Explanation:

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

Dividend yield = Capital gains yield

= (12% ÷ 2)

= 6%

Dividend yield = Annual Dividend for next year ÷ Current price

Annual Dividend for next year = ($66.7 × 6%)

= $4.002

So,

The Current dividend per share = Annual Dividend for next year × (1 + interest rate)

= $4.002 ÷ (1 + 0.06)

= $4.002 ÷ 1.06

= $3.78

You might be interested in
Markets and competition Identical products, as well as a large number of buyers and sellers, are characteristics of aperfectly c
Nadya [2.5K]

Answer:

The answer is true.

Explanation:

The sellers in the perfectly competitive market become price takers as they have to sell under the price decided in the market through supply and demand.

This is mainly because there is no way to differentiate the product to change the price. Since all goods are identical, one good is a perfect substitute for another.

7 0
4 years ago
As the operations manager, you prefer to keep a constant workforce and production level, absorbing variations in demand through
podryga [215]

Answer:

Shortage cost for May is $71,000

Explanation:

The expected demand for the month of May is 5000 units.

Shortages for month are carried to next month.

Shortage cost is $10 per month.

(Working days per month x hrs/day x # of workers)

20 days * 8 hours * 23 workers = 3680

Jan :  3680 - 3500 = +180

Feb : 3680 + 180 - 4500 = -640

Mar : 3680 - 640 -6000  = -2980

Apr : 3680 - 2980 -6500 = 5780

May : 3680 - 5780 -5000 = 7100

4 0
3 years ago
Describe how the business infrastructure should be designed so that employees will be able to continue to perform business funct
DochEvi [55]

Answer:

It should be switched to a fully digital firm which is also called as an e-business.

With the growth of technology ( Cloud Computing, Mobile Digital Platforms and Internet of things )

sometimes using Information Systems, and Information Technology can make the company get higher revenue. but other times not because it needs to achieve these in order to use Information Systems:

  • choose the right business model.
  • choose the right software for the business.
  • invest in the complementary assets ( organizational and managerial capital )

i don't know if that answers your question or not but i hope it does help you. have a good day and a lovely year.

7 0
3 years ago
tARP and other lender-of-last-resort programs implemented by the Fed in response to the financial crisis of 2007 and 2008 Multip
Vedmedyk [2.9K]

Answer:

Option D would be the correct choice.

Explanation:

  • The deeply disturbed capital recovery plan was an effort to remove the distressed assets among investment banks everything which gave the treasurer the ability to buy risky assets from corporate various financial institutions.
  • The program proved ineffective as when the allocated cash wasn't used to support consumers, because although the firms weren't even investing because of immoral incentives.

All other choices don't apply to a particular task. So option D seemed to be the right alternative.

5 0
3 years ago
Turner's Inc. has a price-earnings ratio of 16. Alfred's Co. has a price-earnings ratio of 19. Thus, you can state with certaint
djverab [1.8K]

Answer:

B. has a higher market price per dollar of earnings than does one share of Turner's.

Explanation:

4 0
3 years ago
Other questions:
  • If a company from Country A decides to sell merchandise to a company from Country B, then the company from Country A ________.
    10·1 answer
  • . In the step-by-step deployment of MIS in a business, which (and why) of the following will you consider as a Foundation Step f
    10·1 answer
  • Special consideration should be paid to your tutor’s___________when selecting a tutor.
    8·2 answers
  • Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has alw
    9·1 answer
  • f the demand for houses increases, the wage of Wage carpenters will ____ and the quantity will ____. Assume bricks and wood are
    8·1 answer
  • Possible reason of high economic growth?​
    13·2 answers
  • Pronunciation and enunciation have all of the following in common except a. Both involve how you articulate b. Both are importan
    11·1 answer
  • The journal entry required to close the Drawing account is _____. a debit to Income Summary account and a credit to Drawing acco
    9·1 answer
  • Newtech corporation is offering a 10% stock dividend. The firm currently has 200,000 shares outstanding and after-tax profits of
    5·1 answer
  • Although humans made stone tools for 200,000 years the most sophisticated form and last complete stone tool kit is the ________,
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!