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stich3 [128]
3 years ago
8

The next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4

.5 percent forever. If the stock currently sells for $37 per share.
a. What is the required return?
b. What is the dividend yield?
c. What is the expected capital gains yield?
Business
1 answer:
STALIN [3.7K]3 years ago
3 0

Answer:

a. 10.8%

b. 6.32%

c. 4.5%

Explanation:

a. Required return= (Expected dividend payment/current stock price) + dividend growth rate

Required return= (2.34/37)+0.045

Required return= 0.108  ⇒ 10.8%

b. Dividend yield= dividend per share / price per share

Dividend yield= 2.34/37= 0.0632 ⇒ 6.32%

c. The capital gains yield refers to the rise in the price of the stock. In this case, the statement indicates that the dividends are anticipated to maintain a growth rate of 4.5 percent forever and according to the definition of capital gains yield that would be the answer for the expected capital gains yield.

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Answer:

1. Quuen Land Division

Margin 6.50%

ROI 11.70%

New South Wale Division Margin

Margin 3.50%

ROI 15.75%

2. New South wale Division

Explanation:

1. Computation for each division's margin, turnover, and return on investment (ROI)

QUUEN LAND DIVISION MARGIN

Using this formula

Margin =Net operating income/Total Sales

Let plug in the formula

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Turnover=Total sales/Average Asset

Let plug in the formula

Turnover= $ 1,080,000 /$600,000

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Now let determine the ROI using this formula

ROI =Margin * Turnover

Let plug in the formula

ROI=6.50%*1.8

ROI=11.70%

NEW SOUTH WALE DIVISION MARGIN

Margin =$ 83,475 / $ 2,385,000

Margin=3.5%

NEW SOUTH WALE DIVISION ROI

First step is to determine the Turnover using this formula

Turnover=Total sales/Average Asset

Let plug in the formula

Turnover= $ 2,385,000 /$530,000

Turnover =4.5 times

Now let determine the ROI using this formula

ROI =Margin * Turnover

Let plug in the formula

ROI=3.5%*4.5

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3 0
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Answer:

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3 years ago
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Ivanshal [37]

Answer:

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Explanation:

Net domestic product (NDP) is obtained by subtracting depreciation from gross domestic product (GDP), and it can be calculated at market price (NDPmp) or at factor cost (NDPfc):

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If we substitute NDPfc into option B, we will get:

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Answer:

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