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
Oakley Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $32,100. If
Murrr4er [49]

Answer: $2100

Explanation:

From the question, we are informed that Oakley Company does not ring up sales taxes separately on the cash register and that the total receipts for February amounted to $32,100 and the sales tax rate is 7%.

The amount that must be remitted to the state for February's sales taxes will be:

= $32,100/(1+7%) × 7%

= $32100/(1 + 0.07) × 0.07

= $32100/1.07 × 0.07

= $2100

7 0
3 years ago
All of the following issues can be addressed by a faculty member at your high school except
Orlov [11]

The issues are as follows:

1) nutrition.

2) financial aid.

3) hearing and vision tests.

4) legal help.

The issue that cannot be addressed by the faculty members at the high school is the legal help.

Fourth option is the correct answer.

<h3>What is meant by a high school?</h3>

A high school is the place where the students are studying in the grades from 9th to 12th.

The faculty members of the high school are addressing the issues relating to financial assistance, testing of hearing and eye vision and the nutritional requirements.

Therefore, the legal help being the issue which could not be addressed by faculty members in the high school.

Learn more about the faculty members in the related link:

brainly.com/question/11920261

#SPJ1

7 0
2 years ago
A young couple has $300,000 that they have used to aggressively trade growth stocks. They place their account with a Registered
EastWind [94]

Answer:

the investment advisor should do nothing

Explanation:

In the scenario that is being described, the investment advisor should do nothing. This is because the investment advisor did nothing wrong or illegal, he simply followed the instructions that were strictly provided by the clients, therefore acting in accordance with the customers' wishes. Meaning that he has nothing to fear from the client's being accept because they have no standing to take legal action against the advisor.

7 0
3 years ago
What is the sum?<br>8+(-12)<br>0 -20<br>-4.<br>20​
Liula [17]

Answer:

is it negative 8? let me know if u get it rt

3 0
3 years ago
Should all bank trasactions be recorded
NARA [144]

Answer:yes

Explanation:

Yes indeed.

5 0
3 years ago
Other questions:
  • Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300
    6·1 answer
  • Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,700 client-visits, but
    5·1 answer
  • In the current year, Hermanson Corporation reported net income of $240,000, paid dividends of $25,000 on common stock, and $40,0
    5·1 answer
  • Receivers of bad news are less disappointed if they know the reason for the rejection, feel the news was revealed sensitively, a
    13·1 answer
  • A bank employee so customers personal identification information to a third party. What law did the employee break?
    14·1 answer
  • Suppose you are buying your first condo for $145,000, and you will make a $15,000 down payment. You will finance the remainder w
    7·1 answer
  • The price elasticity of demand for lightbulbs is likely to be unit elastic because
    8·1 answer
  • Assume that if you advertise and your rival advertises, you each will earn $4 million in profits. If neither of you advertises,
    12·1 answer
  • In 2-5 paragraphs, describe how you plan to use at least one technology you learned about in the course in order to work more ef
    11·1 answer
  • Individuals who score high in ____ tend to take their jobs seriously and act responsibly at work.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!