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
Zinaida [17]
3 years ago
5

If D 0 = $1.75, g (which is constant) = 3.6%, and P 0 = $32.00, what is the stock's expected total return for the coming year?

Business
1 answer:
Contact [7]3 years ago
6 0

Answer:

Stock's expected total return for the coming year is 9.27%

Explanation:

P0 = D0(1+g) / (r-g)

$32 = 1.75 * (1 + 3.6%) / (r - 3.6%)

32 = 1.75 * (1.036) / (r - 0.036)

32 = 1.813 / (r - 0.036)

32*(r - 0.036) = 1.813

32r - 1.152 = 1.813

32r = 1.813 + 1.152

32r = 2.965

r = 2.965 / 32

r = 0.09265625

r = 9.265625%

r = 9.27%

You might be interested in
_____ exists because people's wants for goods and services are greater than the number of products that can be made from availab
seropon [69]
Scarcity exists because people's wants for goods and services are greater than the number of products that can be made from available resources
3 0
2 years ago
The newspaper reported last week that Bennington Enterprises earned $28 million this year. The report also stated that the firm�
rosijanka [135]

Answer: a). Firm's growth rate = 10.5%

b). Next year's earnings = $30,940,000.00

Explanation: Earnings growth rate is the percentage change in earnings given specific variables.

The firm's earnings growth rate g = Return on equity (ROE) × Retained earnings (b) = 0.15(0.70)

g =0.105 or 10.5%

In finding next year's earnings, we multiply the current earnings times one plus the growth rate.

Next year's earnings = Current earnings(1 + g)

Next year's earnings = 28,000,000(1 + 0.105)

Next year's earnings = $30,940,000.00

7 0
2 years ago
Read 2 more answers
What amount would the insurance company pay for vandalism that does $425 of damage to a home if the insured homeowner has a $500
iren [92.7K]

ZERO amount would the insurance company pay for vandalism that does $425 of damage to a home if the insured homeowner has a $500 deductible.

( Because the deductible exceeds the loss or the damage. The loss is $425 and the deductible is $ 500, so here the deductible exceeds the loss hence the insurance company will not pay anything).

People like you pay premiums to insurance companies to cover potential losses related to their property. Insurance companies receive these premiums and aggregate them into money pools. These funds are available to cover losses incurred by pool members.

When you report a car accident to the insurance company, the insurance company will send an adjuster to assess the damage. The expert's first task is to decide whether to classify the vehicle as a total loss. Assuming the vehicle is a total loss, the expert performs a valuation and assigns a value to the vehicle.

Learn more about vandalism at

brainly.com/question/13646632

#SPJ4

5 0
1 year ago
A manager responsible for facilitating the exchange of products between an organization and its customers through activities suc
Tpy6a [65]

Answer:

marketing manager

Explanation:

Marketing refers to all the activities that a company performs to convince customers to buy its products. They are the actions undertaken by a company to promote buying of its goods and services. These activities include advertising, sales promotions, direct sales, and product delivery to customers and other businesses.

The marketing manager is the senior officer responsible for the marketing functions of a company.  He or she is the leader of the marketing department and coordinates everyday activities in that section. The marketing manager balances and selects the most efficient channel of promoting company products such as TV advertising, print media, or digital marketing.

6 0
3 years ago
What type of relationship do a lawyer and a client have?
VMariaS [17]
Business related purpose. There is no serious connection just lawyer to client and client to lawyer
7 0
3 years ago
Other questions:
  • Highly educated and skilled professsional who specializes i the prevention, tratment, and rehabilitation of injuries
    13·1 answer
  • Mr. A, a cash-basis taxpayer, sold his business in the current year for $120,000. The contract allocated $40,000 to inventory an
    14·1 answer
  • A new purchasing system for just-in-time production requirements has been proposed. Users want access to current master file inf
    9·1 answer
  • Which best describes an investor’s primary goal?
    11·2 answers
  • The property tax on a rental house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charge
    8·1 answer
  • On the first day of the fiscal year, Hawthorne Company obtained an $88,000, seven-year, 5% installment note from Sea Side Bank.
    13·2 answers
  • Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Berna
    9·1 answer
  • What ways you could use to increase market share
    8·1 answer
  • Nouvelle-Aquitaine Railroad is comparing two separate capital structures. The first structure consists of 405,000 shares of stoc
    7·1 answer
  • A report by Bedell, Cohen, and Sullivan promotes the use of full-service case management as practice based on an analysis of a p
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!