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elena55 [62]
3 years ago
6

Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 9 percent. You also

know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, the current dividend is $_______ per share.
Business
1 answer:
steposvetlana [31]3 years ago
7 0

Answer:

$3.72

Explanation:

in order to determine the price of the stock we use the dividend discount model:

P₀ = Div₁ / (Re - g)

  • P₀ = $90
  • Div₁ = ?
  • Re = 9%
  • g = 9% / 2 = 4.5%

Div₁ = P₀ x (Re - g)

Div₁ = $90 x (9% - 4.5%) = $90 x 4.5% = $4.05

now the current dividend (Div₀) = Div₁ / (1 + Re) = $4.05 / (1 + 9%) = $4.05 / 1.09 = $3.7156 = $3.72

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Answer:

The correct option is true

Explanation:

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CalPERS as a pension fund manager coupled with being a major shareholder in many of the firms where it holds investment has just employed the strategy of direct intervention known as shared activism in order  that the value of its  portfolio is optimized.

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3 years ago
When marketing managers attempt to identify "Key Success Factors" they typically are engaged in the _________________ component
spin [16.1K]

Answer:

The correct answer is letter "D": Industry analysis.

Explanation:

The strategic marketing planning process represents the set of steps companies take to advertise their products. The process could take five (5) steps which are <em>planning the firm's mission, goals, and objectives; analyze the industry positioning; establishing marketing tactics; conducting the process; </em>and<em>, monitoring. </em>

By analyzing the industry position, organizations conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to find out the "Key Success Factors" and determine the inner and outer companies factors that could affect its performance.

7 0
3 years ago
Create a PPC for a country that produces 50 million guns and 200 tons of butter and label the following
Neporo4naja [7]

The production possibility curve shows the different combination for output that can be produced from the resources and technology.

<h3>What is a PPC?</h3>

It should be noted that a PPC is simply a graph that's used to show the different combination for output that can be produced from the resources and technology.

In this case, the points show how much of the goods van be produced. Point E means underutilization.

Learn more about PPC on:

brainly.com/question/2617319

#SPJ1

8 0
2 years ago
The average annual return form stock investments historically is: a) 11.3% b) 12% c) 12.5% d) 20$​
MArishka [77]

Answer: i dotn noy

Explanation:

7 0
2 years ago
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A lawn maintenance company compares two ride -on mowersthe Excelsior, which has an expected working-life of six years, and the G
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