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
loris [4]
3 years ago
14

Company B is expected to pay a dividend of $2 per share at the end of year 1 and the dividends are expected to grow at a constan

t rate of 4 percent forever. If the current price of the stock is $20 per share, calculate the expected return (i.e., the cost of equity capital for the firm)
Business
1 answer:
4vir4ik [10]3 years ago
6 0

Answer:

The answer is 14%

Explanation:

This will be solved by Dividend discount model based approach

re = D1/Po + g

where re is the rate of return

D1 is expected dividend($2)

Po is the current market value of equity($20)

g is the expected growth rate of dividend(4% or 0.04)

2/20 + 0.04

0.1 + 0.04

= 0.14

Expressed as a percentage is

0.14 x 100

14%

Therefore, the expected return is 14%

You might be interested in
The County Auditor is the Chief ____ Officer of a county.
Leto [7]

Answer:

The County Auditor is the Chief <u>Fiscal</u> Officer of a county.

Explanation:

The County Auditor is Chief Fiscal Officer of the county. The primary responsibility of the county auditor is to account from the receipts and collection of funds by the county to the disperment of the funds to different county agencies. The county auditor also maintains the records of the movement of the county assets.

3 0
3 years ago
The main functions of Human Resources Management include _____.
Mnenie [13.5K]

The correct answer is all of the above.

Human Resources Management deals with training, determining compensation and evaluating a potential employee’s promise and effectiveness. Because Human Resources Management deals with all of these things it makes all of the above the correct answer.

4 0
3 years ago
a property manager has just started working for a new property owner who owns a small apartment building. the property manager l
ivolga24 [154]

Competitive analysis includes investigation into competing properties.

A property manager's most obvious job is finding tenants for rental properties. Property managers are responsible for viewing prospective tenants, conducting credit and reference checks on applicants, and coordinating the move-in process.

The most common examples of blockbusting include: There is something making door-to-door phone calls asking neighborhood members to sell them before their property values ​​plummet. When.

In the absence of an Agency Agreement, analysis of your obligations to Buyers includes honesty, fairness, and proper accounting of funds. You are under no obligation of loyalty or confidentiality and cannot represent the purchaser. To obtain the maximum benefit of the property as directed by the owner.

Learn more about analysis at

brainly.com/question/890849

#SPJ4

4 0
1 year ago
The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
Mama L [17]

Answer:

Please see answers below

Explanation:

1. Prepare an income statement for the year ended, December 31, 2021

Fightin' Blue Hems Corporation, Income statement for the year ended, December 31, 2021.

Details

$

Service revenue

500,000

Salaries expense

400,000)

Rent expense

20,000)

Depreciation expense

40,000)

Interest expense

5,000)

Earnings for the year

35,000

2. Prepare a statement of stockholder's equity for the year ended, 31, December, 2021

Fightin' Blue Hens Corporation statement of stockholder equity for the year ended , December 31, 2021.

Details

$

Common stock

300,000

Retained earnings

60,000

Earnings for the year

35,000

Stockholder equity

395,000

3. Prepare a classified balance sheet as at 31, December

Fightin' Blue Hens Corporation, classified balance sheet for the hear ends, December 31, 2021.

Details

$

Fixed assets

Equipment

400,000

Accumulated depreciation

135,000

Net fixed assets

265,000

Current assets

Cash

12,000

Accounts receivables

150,000

Prepaid rent

6,000

Supplies

30,000

Total current assets

198,000

Current liabilities

Accounts payable

($12,000)

Salaries payable

(11,000)

Interest payable

(5,000)

Working capital

170,000

Long term liabilities

Notes payable (due in two years)

(40,000)

Net total assets

395,000

Financed by;

Common stock

300,000

Retained earnings

60,000

Earnings for the year

35,000

Stockholder equity

395,000

4 0
3 years ago
Which of the following consists of everything outside an organization's boundaries that might affect how the business operates?
seraphim [82]

The external factors that might affect how the business operates are:

  • A. Domestic business environment
  • B. Political-legal environment
  • C. External environment

<h3>What are the external factors that impact business operation?</h3>

The external factors that impact business operations include:

  • Social
  • Economic
  • Competitive
  • Demographic
  • Global factors
  • Technological
  • Political and legal.

The corporate culture of an organization is outside its boundaries.

Thus, the external factors that might affect how the business operates are Domestic, Political-legal, and External environments and not the corporate culture.

Learn more about an organization's external environments at brainly.com/question/15020066

#SPJ1

8 0
2 years ago
Other questions:
  • which of the following statements about the impact of a company's competitive efforts in a region on its regional market share a
    10·1 answer
  • Rob operates a small plumbing supplies business as a sole proprietor. In 2018, the plumbing business has gross business income o
    15·1 answer
  • Organizations that advance a particular cause or belief are called __________. a. interest groups b. political action committees
    13·2 answers
  • These are generally awarded to undergraduate students based on need, school cost, and/or enrollment status and do not have to be
    13·2 answers
  • Jim sells college textbooks. To date Jim has sold $141,002 worth of textbooks. His sales quota is $194.159. Tomorrow he expects
    12·1 answer
  • Nancy and Joan bought a small farm for $300,000 under an installment land contract with a $50,000 down payment. They will pay in
    12·1 answer
  • Allocate $249,000 net income by providing annual salary allowances of $66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas; gr
    11·1 answer
  • In what ways did Skilling's involvement in unethical financial and accounting practices benefit stakeholders initially?
    9·1 answer
  • Instructions:wikarambulan is a sound like game. by saying\pronouncing and connecting the word, reveal the elements and factors o
    8·1 answer
  • For a college student who needs to buy an $80 textbook, the money she received from her parents for the purchase of school suppl
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!