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elena55 [62]
2 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]2 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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List three factors to consider when choosing a financial institution
jasenka [17]

When you are considering a financial institution you should consider what type of accounts you want to have, how much money you have and if you want to invest. Different financial institutions offer different rates and benefits for their members so it makes sense to figure out your options based on what you want in return.

8 0
3 years ago
Working women experienced new freedoms in the Progressive era because: a. young immigrant factory workers gained independence fr
Triss [41]

Answer:

The correct answers are: a. young immigrant factory workers gained independence from the traditional control of their fathers. and b. employment opened up to married white women.

Explanation:

The progressive era was a period of widespread social activism and political reform throughout the United States, spanning from the 1890s to the 1920s. The main objectives of the progressive movement were to eliminate the problems caused by industrialization, urbanization processes, immigration and political corruption.

Across the nation, middle-class women organized themselves in the name of social reform during the progressive era. Women were able to promote reforms such as the prohibition of alcohol, female suffrage, childcare and public health.

They formed local clubs, which after 1890 were coordinated by the General Federation of Women's Clubs (GFWC).

Women during the progressive era were often unhappy and did not enjoy their sexual intercourse, middle-class women known to bring about changes, specifically in cities like New York City, questioned the approach to marriage and sexuality. After the Victorian era, women craved more sexual freedom after the repression of the previous stage. Dating became a new form of relationship during the progressive era and introducing into the United States a more romantic way of seeing marriage and personal relationships. Within many commitments and marriages, both parties would exchange love notes as a Way to express your sexual feelings. The division between passionate and aggressive love generally associated with men and the most spiritual romantic love of women became evident in the middle class as women were judged on how they should be respected according to how they expressed these feelings. Therefore, women frequently expressed emotions without passion towards love, as a way of establishing their status among men in the middle class.

7 0
2 years ago
Pittman Framing's cost formula for its supplies cost is $1,200 per month plus $20 per frame. For the month of November, the comp
Darya [45]

Answer:

$450 U

Explanation:

Spending Variance for Supplies = Standard Cost - Actual Cost

Standard cost formula = $1,200 per month + $20 per frame

Standard cost for actual output = $1,200 + ($20 \times 610)

= $1,200 + $12,200

= $13,400

Actual cost = $13,850

Spending Variance = $13,400 - $13,850

<u>= -$450 Unfavorable</u>

Since the value is negative the variance is unfavorable as actual cost is more than standard cost of the product.

8 0
3 years ago
Which of the following statements is incorrect? Group of answer choices Cost of goods available for sale will always be equal to
lorasvet [3.4K]

Answer:

Ending inventory is greater than beginning inventory when purchases are less than cost of goods sold.

Explanation:

Ending inventory is greater than beginning inventory when purchases are less than cost of goods sold is the wrong answer option

Ending inventory is the amount of inventory a company has in stock at the end of it's fiscal year. It is the beginning inventory plus net purchases minus cost of goods sold.

When the beginning inventory is greater than the ending inventory, then has been sold in the period than you bought.

7 0
3 years ago
Exercise 8-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $389,610 for real estate with land, land impr
polet [3.4K]

Answer:

1.  Land  $175,324.50

   Land improvements $38,961

   Building  $175,324.50

2. Dr Land   $175,324.50

   Cr Cash   $175,324.50

   Being entries to recognize cost incurred in the purchase of Land

   Dr Land improvements   $38,961

   Cr Cash   $38,961

   Being entries to recognize cost incurred in the purchase of Land improvements

   Dr Building   $175,324.50

   Cr Cash   $175,324.50

   Being entries to recognize cost incurred in the purchase of Building

Explanation:

Using the appraisal method to apportion the cost of an asset to the components of the asset involves the consideration of the appraised cost of each individual item as a portion of the total cost of the asset.

Thus, given that  Rodriguez Company pays $389,610 for real estate with land, land improvements, and a building

Appraised cost of

Land = $247,500

Land improvements = $55,000

Building = $247,500

Total appraised cost of the asset = $247,500 +$55,000 + $247,500

= $550,000

Allocated cost of;

Land = $247,500/$550,000 * $389,610

= $175,324.50

Land improvements = $55,000/$550,000 * $389,610

= $38,961.00

Building = $247,500/$550,000 * $389,610

= $175,324.50

Journal entries

Dr Land   $175,324.50

Cr Cash   $175,324.50

Being entries to recognize cost incurred in the purchase of Land

For journal entries, we debit each of the individual assets account and credit cash to recognize the cost incurred in the purchase of the asset.

5 0
2 years ago
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