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sasho [114]
3 years ago
14

stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to grow at a constant

rate of 6.00% per year. What is the expected year-end dividend, D1? a. $2.20 b. $2.69 c. $2.96 d. $2.44 e. $3.25
Business
2 answers:
elena-s [515]3 years ago
7 0

Answer:

D; $2.44

Explanation:

In this question, we are asked to calculate expected year-end dividend D1 for a particular stock.

Mathematically,

Current stock price = Expected year end dividend/(Required return rate - growth rate)

Using the information in the question, we identify the following;

Current stock price = $57.50

Expected year end dividend = ?

Required return rate = 10.25%(0.1025)

Growth rate = 6%(0.06)

We can rewrite the equation as ;

Expected year end dividend = Current stock price * (Required return rate - Growth rate)

= 57.5 * (0.1025 - 0.06) = 57.5 * 0.0425 = $2.44375

Hence, the expected year-end dividend D1 = $2.44

Ivan3 years ago
7 0

Answer: D. $2.44

Explanation:

GIVEN the following ;

Required rate of return (r) = 10.25% = 0.125

Price of share (P0) = $57.50

Growth rate = 6% = 0.06

Expected year end dividend(D1)

Price of stock(P0):

= Dividend (D1) ÷ ( rate of return - growrh rate)

$57.50 = (D1) ÷ (0.1025 - 0.06)

$57.50 = D1 / 0.0425

D1 = $57.50 × 0.0475

D1 = $2.44375

Therefore, expected year-end dividend = $2.44

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Answer:

The answer is below

Explanation:

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The board comprises seven members with 14-year terms. They also partake in the Federal Open Market Committee and as well liaising with leaders in other parts of the government.

4 0
3 years ago
You are analyzing an office building to determine if it make sense to build it. the building and site improvements cost $145 and
Sophie [7]

Answer:

market net operating profit per square foot = $8.80

Explanation:

total investment = $145 per square foot

the investor requires a 6% rate of return = $145 x 6% = $8.70 per square foot

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proportional market vacancy and credit loss = $11 x 5% =        ($0.55)

<u>other expenses = $11 x 15% =                                                       ($1.65)  </u>

market net operating profit per square foot =                             $8.80

The project should be carried out since the net operating profit is larger than the investor's required rate of return.

7 0
3 years ago
A company planned to sell 100 canoes for the month of April at an average sales price of $600. Midway through the month, the com
andreyandreev [35.5K]

Answer:

flexible budget amount for canoe sales revenue for April is $72000

Explanation:

given data

sell =  100 canoes

average sales price = $600

sold = 65

total sales = 130

canoes at an average price = $595

actual sales = 120 canoes

to find out

flexible budget amount for canoe sales revenue for April

solution

we know here for flexible budget april sale unit are = 120

and selling price is $600

so that April sales will be here = 120 × 600

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so flexible budget amount for canoe sales revenue for April is $72000

3 0
3 years ago
At the time of his death on July 9, Aiden held rights in the following real estate: Fair Market Value (on July 9) Apartment buil
VladimirAG [237]

Answer:

The answer is \$1,200,000"".

Explanation:

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Though this tree farm is jointly held, Aiden is assumed to have given 1/3 of the treatment because his mother gave her a gift to create the lease. The tenancy of the major chunk is subjected to the fifty percent spouse exclusion rule. None of the structures is included as Chloe does not escape Aiden.

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Answer:

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Explanation:

The optimal quantity for Patrick to consume is 5 cans of GreenCow.

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If Patrick were to consume any more than 5 cans of GreenCow, the cost of each additional can would be higher than the additional benefit (because the marginal cost curve is higher than the marginal benefit curve). Consuming any cans beyond the 5th, therefore, makes him worse off.

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