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ki77a [65]
4 years ago
5

Jackson Corp. common stock paid $2.50 in dividends last year (D0). Dividends are expected to grow at a 12-percent annual rate fo

rever. If Jackson's current market price is $40.00, what is the stock's expected rate of return (nearest .01 percent)?
a. 19.00%

b. 18.25%

c. 11.00%

d. 5.50%
Business
1 answer:
Ne4ueva [31]4 years ago
4 0

Answer:

Current dividend paid (Do) = $2.50

Growth rate = 12% = 0.12

Current market price (Po) = $40

Cost of equity (Ke) = ?

ke = Do<u>(1 + g)</u>  + g

             Po

Ke = $2.50<u>(1 + 0.12) </u>  + 0.12

                     $40

ke = $2.50<u>(1.12)</u>  + 0.12

                  $40

Ke = 0.07 + 0.12

ke = 0.19 = 19%

The correct answer is A

Explanation:

Cost of equity is a function of current dividend paid, subject to growth, Plus  growth rate divided by the current market price.

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You own a portfolio that has $1,600 invested in Stock A and $2,700 invested in Stock B. Assume the expected returns on these sto
Rina8888 [55]

Answer:

the expected return on the portfolio is 14.77%

Explanation:

The computation of the expected return on the portfolio is shown below:

The expected return is

= ($1,600 ÷ $4,300) × 11% + ($2,700 ÷ $4,300) × 17%

= 14.767 %

= 14.77%

The $4,300 comes from

= $1,600 + $2,700

= $4,300

hence, the expected return on the portfolio is 14.77%

The same is considered

3 0
3 years ago
The cost of hardware, software, and telecommunications services needed to build a web site have ________ over the last decade.
kherson [118]
The answer that completes the statement above is DECREASED DRASTICALLY. There has been an extreme decrease of the cost of the software, hardware, and telecommunications services that are required in order to create a Website because of the high availability of different kinds of softwares, and hardwares. The supply of these services is also increased over the last decade making its cost experience a substantial decrease.
8 0
3 years ago
What will the elasticity of resource demand be if unit wages rise by 5 percent and the number of employed workers falls by 12 pe
Amiraneli [1.4K]

The correct answer is 2.4.

The simplest way to define elasticity of demand is by using the following formula:

Elasticity of Demand = Change in Demand / Change in Prices

Then, in our question we have:

Demand Elasticity = 12% / 5% = 2.4

Why is it called elasticity of demand?

An elastic product is one in which demand significantly shifts in reaction to price fluctuations. In other words, the product's demand point has expanded significantly from its earlier point. It is inelastic if the amount purchased fluctuates little when the price of the good or service changes.

What Does elasticity of demand tells us?

It reveals how much the quantity needed alters in response to pricing changes made by the company. The price elasticity of demand explains how the amount sought in the market changes when the price changes if we are evaluating a market demand curve.

Learn more about elasticity of demand: brainly.com/question/23301086

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5 0
2 years ago
George Washburn had earnings from his salary of $40,000, interest on savings of $1,150, a contribution to a traditional individu
guapka [62]

Answer:

$40,330

Explanation:

Data provided in the question:

Earnings from salary = $40,000

Interest on savings = $1,150

Contribution to a traditional individual retirement account = $1,200

Dividends from mutual funds = $380

Now,

The George's adjusted gross income would be

= Salary + Interest on savings + Dividends from mutual funds -  Contribution

= $40,000 + $1,150 + $380 - $1,200

= $40,330

8 0
3 years ago
Total quality management (TQM) A. C) works best when used in conjunction with Six Sigma quality control techniques. B. D) is an
nadya68 [22]

Answer: D. A)is a philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operations, 100% accuracy in performing tasks, involvement and empowerment of employees at all levels, team-based work design, benchmarking, and total customer satisfaction.

Explanation: Total Quality Management (TQM) is simply a management approach to long-term success that is attained through customer satisfaction, improving customer experience, detection and reduction or elimination of errors in manufacturing, streamlining supply chain management, training of workers etc. with the aim of holding all parties involved in the production process accountable for the overall  product or service quality. It is therefore, a philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operations, 100% accuracy in performing tasks, involvement and empowerment of employees at all levels, team-based work design, benchmarking, and total customer satisfaction.

6 0
3 years ago
Read 2 more answers
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