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aniked [119]
3 years ago
15

Judy's Boutique just paid an annual dividend of $1.48 on its common stock and increases its dividend by 2.2 percent annually. Wh

at is the rate of return on this stock if the current stock price is $29.60 a share?
Business
1 answer:
notsponge [240]3 years ago
6 0

Answer:

7.31%

Explanation:

Data provided in the question:

Annual dividend paid, D0 = $1.48

Dividend growth rate, g = 2.2% = 0.022

Current stock price per share = $29.60

Now,

Current price of share = D1 ÷ (r - g)      .........(1)

Here,

r is the required rate of return

D1 = dividend at year 1 =  D0 × (1 + g)

= $1.48 × (1 + 0.022)

= $1.51256

Therefore, from (1) we get

$29.60 = $1.51256 ÷ (r - 0.022)

or

(r - 0.022) = 0.0511

or

r = 0.0511 + 0.022

or

r = 0.0731

or

r = 0.0731 × 100% = 7.31%

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Feliz [49]

Answer:

Wallach describes  three ways of thinking :  

  • T<u>ransgenerational thinking</u>: It helps us to think about our problems and the ways in which you can resolve them ,and what will be the future consequence of your thinking.

  • <u>Futures thinking:</u> Wallach advocated the fact that   we should just not think about the future in one single perspective rather we should open our mind about various future perspectives.

  • <u>Telos thinking:</u>The word Telos comes from a greek word which means :Ultimate aim".One should think that what will happen next once a particular problem is solved

Wallach relate the future to a part of speech establishing a link between Thomas Khun quote: “People don’t shift unless they have a vision of what it is they’re shifting to.” and  Martin Luther King Speech of "I Have a Dream" he says that that speech is successful as it shows what his dream and what will come after the dream is accomplished

6 0
3 years ago
Stephen plans to purchase a car 5 years from now. The car will cost $43,011 at that time. Assume that Stephen can earn 7.11 perc
olga nikolaevna [1]

Answer:

$30,174.74

Explanation:

The computation of present value is shown below:-

Future value = Present value × (1 + Rate of interest ÷ 1200)^12 × time period

$43,011 = Present value × (1 + 7.11 ÷ (12 × 100)^(12 × 5)

$43,011 = Present value × (1 + 7.11 ÷ 1,200)^60

$43,011 = Present value × (1 + 0.005925 )^60

Present value = $43,011 ÷ (1 + 0.005925 )^60

= $43,011 ÷ (1.005925 )^60

= $43,011 ÷ 1.425397857

= $30,174.73317

or

= $30,174.74

Therefore for computing the present value we simply applied the above formula.

We also attached the spreadsheet for better understanding

In compounded monthly, the interest rate is divided by 12 months and the time period is multiplied by 12 months and the same is to be considered

8 0
3 years ago
When a partner leaves the company, the partnership is dissolved and a new partnership may be formed with the remaining partners.
Kazeer [188]

Answer: TRUE

Explanation: In case of partnership, the owner and business are not considered to be separate legal entity. Thus, if a partner leaves the company whether willingly or unwillingly as in case of death, the existing agreement dissolves.

In such a case, the remaining partners calculate if there is any obligation on the entity to pay to the old partner or some share that the old partner is liable to pay to the firm.

After such considerations a new partnership agreement is formed by the remaining partners.

7 0
3 years ago
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dsp73
If the typical balance on Lucy's credit card is $750 and the interest rate (APR) on her credit card is 16%, how much in interest would you expect Lucy to be charged in a typical month

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6 0
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makkiz [27]

Answer:

E) Valerie

Explanation:

Going by the information in the above question, Valerie gets the watch

According to the law, the Watch will belong to Valerie and not Billy, and for the reason that one cannot buy something from anyone which doesn't belong to them.

So, the initial transaction that took place with Theona and Andy was null and void as well as any subsequent transaction were also nullified.

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