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sweet [91]
3 years ago
8

If the dividend yield for year one is expected to be 5% based on the current price of $50, what will year three dividend (DIV3)

be if dividends grow at a constant 4%
Business
1 answer:
Lina20 [59]3 years ago
8 0

Answer:

Div₃ = $2.81

Explanation:

dividend yield = current dividend / current stock price

0.05 = current dividend / $50

current dividend = $50 x 0.5 = $2.50

Div₀ = $.250

Div₁ = $2.50 x 1.04 = $2.60

Div₂ = $2.60 x 1.04 = $2.704 = $2.70

Div₃ = $2.704 x 1.04 = $2.81

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If stock ghi has an initial price of $100. two years later the price is $132. what is ghi's geometric mean rate of return?
sashaice [31]

An initial price of $one hundred. years later the charge is $132.The ghi's geometric implies a rate of return ($132/$a hundred)^half of - 1 = 14.89%.

A rate of return (RoR) is the net advantage or lack of funding over a distinctive time period, expressed as a percent of the funding's preliminary cost. 1 while calculating the rate of return, you're figuring out the proportion trade from the beginning of the length till the stop.

The yearly fee for the rate of return is the share change within the cost of funding. for example: if you count on you earn a ten% annual charge for going back, then you are assuming that the price of your investment will grow with the aid of 10% every yr.

For instance, if funding is well worth $70 at the give up of the 12 months and turned into bought for $60 at the beginning of the yr, the annual rate of return could be sixteen. sixty six%.

ROI is calculated by subtracting the initial cost of the funding from its final price, then dividing this new variety by way of the cost of the investment, and, sooner or later, multiplying it with the aid of one hundred. The price of return is calculated as follows: (the funding's modern cost – its initial value) divided via the preliminary value; all times one hundred. Multiplying the outcome enables to the expression of the outcome of the system as a percentage.

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7 0
2 years ago
[The following information applies to the questions displayed below.
kicyunya [14]

Answer:

The vehicle are registered with the license plates to identify the owner of the vehicle. For the smog check her certificate will be labelled as smog certificate.

Explanation:

Heide went for renewing the vehicle certificate. She went for smog test and received a smog certificate for her car. She can now add this certificate with her renewal form for further processing. New registration and tag will be provided to her once she is done with all the pre requisites of the renewal process.

6 0
3 years ago
Dietterich Electronics wants its shareholders to earn a return of 15​% on their investment in the company. At what price would t
sattari [20]

Answer:

A.) $1.667

B.) $6.667

C.) $11.667

D.) $16.667

Explanation:

GIVEN ;

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Calculate what the stock price should be today if:

A.) ​$0.25 constant annual dividend​ forever

Dividend = payment per period

Therefore,

Price = (payment per period ÷ rate)

Price = ($0.25 ÷ 0.15) = $1.667

B.)$1.00 constant annual dividend​ forever

Price = (payment per period ÷rate)

Price = ($1.00 ÷ 0.15) = $6.667

C.)$1.75 constant annual dividend​ forever

Price = (payment per period ÷rate)

Price =($1.75 ÷ 0.15) = $11.667

D.)$2.50 constant annual dividend​ forever

Price = (payment per period ÷rate)

Price = ($2.50 ÷ 0.15) = $16.67

6 0
3 years ago
Read 2 more answers
You get a car loan for $16,000 at an annual interest rate of 7%, which requires 5 annual payments. Draw a loan amortization char
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Answer:

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Pleas find it.

Download xlsx
8 0
3 years ago
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givi [52]

Answer:

The answer is Letter D.

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The company was lenient, and that is the reason why Maxine needed to file a court action against the supervisor and Ace.

5 0
3 years ago
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