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
kondor19780726 [428]
3 years ago
9

Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $1.25 at the end of the year. Its div

idend is expected to grow at a constant rate of 6.00% per year. If Walter’s stock currently trades for $16.00 per share, what is the expected rate of return?
Business
1 answer:
tino4ka555 [31]3 years ago
3 0

Answer:

The expected/required rate of return is 13.8125%.

Explanation:

The stock is a constant growth stock as the dividends are expected to grow constantly forever. The constant dividend growth model of DDM is used to calculate the price of such a stock today. As we already know the price, we will use the formula of the constant growth model to determine the required rate of return. The formula for constant growth model is:

P0 or Price today = D1  /  r - g

Plugging in the available known values,

16  =  1.25  /  (r - 0.06)

16 * (r - 0.06)  =  1.25

16r  -  0.96  =  1.25

16r = 1.25 + 0.96

r = 2.21 / 16

r = 0.138125  or  13.8125%

You might be interested in
Olivia Company, whose reporting year ends on December 31st, purchased a vehicle for $50,000 on March 12th, 2018. The vehicle’s e
Trava [24]

Answer:

$12,600

Explanation:

If Olivia Company uses the units of production depreciation method, we must calculate the depreciation cost per mile:

depreciation cost per mile = (purchase cost - salvage value) / total miles driven

depreciation cost per mile = ($50,000 - $5,000) / 250,000 miles

depreciation cost per mile = $45,000 / 250,000 = $0.18 per miles

Now we multiply by the total miles driven the first year times the depreciation cost per mile = 70,000 units x $0.18 per unit = $12,600

5 0
3 years ago
Read 2 more answers
Guess my birthday and i’ll mark you brainiest . hint october
oksian1 [2.3K]

Um...october 22nd ?

i hope this is it lol

8 0
3 years ago
Read 2 more answers
Opponents of prohibition argued that doing this governmental regulations was contrary to basic constitutional values and consume
Lera25 [3.4K]

The opponents of prohibition argued that doing the Moralizing governmental regulations was contrary to basic constitutional values and consumer freedoms.

<h3>What is the Moralizing regulation?</h3>

Basically, the term "Moralizing" means the action of commenting on issues of right and wrong, such as with an unfounded air of superiority or having an overly critical point of view on issues of right and wrong.

From the moral values, the government regulation can emphasizes respect for rules and ethical considerations as the rules are the supreme guarantor of morality, ethics, and justice.

However, the opponents of prohibition argued that doing the Moralizing governmental regulations was contrary to basic constitutional values and consumer freedoms.

Because the government rules are the supreme guarantor of morality, ethics, and justice, then, the government should grant scheduled importance to the law along the way of earning decisions.

Read more about Moralizing

brainly.com/question/26282247

#SPJ1

4 0
2 years ago
List 2 ways in which a positive attitude is a foundation for positive workplace behaviors.
e-lub [12.9K]
<span>Having a good, positive attitude, along with positive thinking, at work will reflect on what you do and make you a more productive employee. This can determine how well you get your projects done and also how others perceive you. If you display a good attitude, you may increase your chances for a promotion or a raise if you are a positive role model for others within your department at work.</span>
3 0
3 years ago
If the early bird dry cleaners displays a sign in the window of its store that says it will take any competitor's coupons, it is
Paha777 [63]
Taking in the coupons of the competitors and considering it to your business as revenue is considered as a technique to draw more consumers in the market. In this way, the customers are given another option giving the benefit to this new business to showcase its primes.
5 0
3 years ago
Other questions:
  • A firm has the following cost and marginal cost​ functions: Upper C left parenthesis q right parenthesis equals 64 plus q square
    11·1 answer
  • Explain why the offer in the following facts has EITHER been revoked or has been accepted (It is only one or the other): Bonnie
    12·1 answer
  • Rework problem 3 in section 1 of Chapter 7 of your textbook, about the Natural Fertilizer Company, using the following data. Ass
    8·1 answer
  • Bluestone? Metals, Inc., is a metal fabrication firm that manufactures prefabricated metal parts for customers in a variety of i
    9·1 answer
  • Garage Magic, Inc., contracts for the sale of a certain number of garage door openers to Home &amp; Yard Hardware stores. Ian bu
    10·1 answer
  • Show Me How On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of Edwards Co. common s
    5·1 answer
  • On December 31 of Swift Co.’s first year, $70,000 of accounts receivable is not yet collected. Swift estimates that $4,000 of it
    6·1 answer
  • Howie Long has just learned he has won a $506,300 prize in the lottery. The lottery has given him two options for receiving the
    11·1 answer
  • Swifty Corporation plans to introduce a new product and is using the target cost approach. Projected sales revenue is $850500 ($
    5·1 answer
  • Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!