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Sedbober [7]
3 years ago
6

This morning you purchased a stock that just paid an annual dividend of $3.10 per share. You require a return of 9.2 percent and

the dividend will increase at an annual growth rate of 4 percent. If you sell this stock in three years, what will your capital gain be?
Business
1 answer:
sergiy2304 [10]3 years ago
6 0

Answer:

$2.48

Explanation:

This morining a stock was purchased.

The stock just paid an annual dividend of $3.10 per share

A return of 9.2% is required

= 9.2/100

= 0.092

The growth rate is 4%

= 4/100

= 0.04

The first step is to calculate today's price

= D1/(r-g)

=3.10× 1+0.04/0.092-0.04

= 3.10×1.04/0.092-0.04

= 3.224/0.052

= $62

The price at the end of year 3 can be calculated as follows

= today's price × (1+g)

= 62×(1+0.04)

= 62×1.04

= $64.48

Therefore, the capital gain can be calculated as follows

Price at the end of year 3-today's price

= $64.48-$62

= $2.48

Hence the capital gain is $2.48

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tangare [24]

Answer:

If an employer wants the employee to work more hours in a week, the result is a larger paycheck.

Explanation:

An hourly wage job means that you get paid according to the number of hours you work and your wage will be determined by this. If you work more hours your paycheck will be higher and if you work less hours it will be lower. According to this, the statement that describes an hourly wage job is: if an employer wants the employee to work more hours in a week, the result is a larger paycheck.

8 0
3 years ago
Of the world's population of 7.5 billion people, _________ are scraping by on incomes that average less than $2 per day.
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3 0
3 years ago
Before you buy a car you need to know your need and your​
olganol [36]
<h2>Before you buy a car you need to know your need and your <u>budget</u></h2>

Explanation:

There are many things associated with the car:

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2. Check for credit score: You can check your credit score to save your money though not huge but a little

3. Compare prices: Compare the prices of the car with other shops and choose the best one.

4. Do a review of repair records: It is better to check the review so that we can assess the life time of the car and in tandem with the amount of the car.

Last but not the least, you must understand your need and the budget because these are two essential things which comes in front of you when you think about buying a car.

3 0
3 years ago
Soccer Wholesale purchased land and a warehouse for $990,000. In addition to the purchase price, Soccer Wholesale makes the foll
Elan Coil [88]

Answer:

Cost of land= $1,124,100

Explanation:

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<em>These costs include purchase cost, fees and commission associated with the purchase transaction. </em>

Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.

However, remember that land is not depreciated because it has an infinite life span.

So using the historical cost principle the cost of the land

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Cost of land= $1,124,100

6 0
2 years ago
Caveman Clubs Inc. tested a new graphite golf club that they have developed, Model X-5. They did a series of experiments with go
Ostrovityanka [42]

Answer:

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Explanation:

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When the information is presented with numerical data support, we can say its a quantitative data, because it tells us "how much?".

When the information is presented just with adjetives, telling us about the performance its a qualitative data, because it tell us "how things happened?"

A control variable is the data that is going to modified in order to see changes is the independent variable. In this case, the control variable  could be the weight of the club (assumption), and the independent variable the driving distance data(not percentage).

4 0
3 years ago
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