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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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Cerrena [4.2K]

Answer:

to be honest this is a real problem all over the world but with my experience threaten her with something she would get in trouble for with your parents and start bothering her a bunch and going into her room for no reason

5 0
2 years ago
What is the problem with exporting large amounts of central american agricultural products?.
inna [77]

There are a few problems that can arise from exporting large amounts of central American agricultural products. One is that the products may not be able to meet the demand in other countries, which can lead to prices rising and products becoming scarce.

What is American agricultural?
With only one farmer or farm worker needed on average per square kilometre of cropland for agricultural production, American agriculture is highly mechanised. Even though farming is practised in every state in the US, it is most prevalent inside the Great Plains, a vast area of flat arable land in the middle of the country, west of the Great Lakes as well as east of a Rocky Mountains. The Corn Belt, which produces a lot of corn and soybeans, is located in the wetter eastern half, and the Wheat Belt, which produces a lot of wheat, is located in the drier western half. Fruits, vegetables, and nuts are produced in the Central Valley of California.

Additionally, if the products are not properly stored or shipped, they can spoil and become worthless. Finally, if the products are not marketed properly, they may not sell well and may not generate the income that was expected.

To learn more about American agricultural
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8 0
1 year ago
On September 1, a company established a petty cash fund of $230. On September 10, the petty cash fund was replenished when there
storchak [24]

Answer:

September 1, petty cash fund is established

Dr Petty cash fund 230

    Cr Cash 230

September 10, petty cash expenses

Dr Supplies expense 53

Dr Postage expense 80

Dr Cash short and over 16

    Cr Petty cash fund 149

September 10, petty cash is replenished

Dr Petty cash fund 149

    Cr Cash 149

September 15, petty cash fund in increased

Dr Petty cash fund 90

    Cr Cash 90

   

3 0
2 years ago
The step in designing a customer value dash–driven marketing strategy in which a company divides a market into distinct groups o
Molodets [167]
<span>The step in designing a customer value dash–driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market​ segmentation. 
The business market and consumers are divided into subgroups that share common properties and characteristics.</span>
7 0
2 years ago
1. Select the correct statement regarding relevant costs and revenues.
Gala2k [10]

Complete Question:

1. Select the correct statement regarding relevant costs and revenues.

A. Sunk costs are not relevant for decision-making purposes.

B. Relevant costs are frequently called unavoidable costs.

C. Direct labor is an example of a unit-level cost.

D. Only variable costs are relevant for decision making.

Answer:

1. A

2. D

3. B

Explanation:

1. The correct statement regarding relevant costs and revenues is that sunk costs are not relevant for decision-making purposes. Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

2. Expected future revenues that differ among the alternatives under consideration are often referred to as differential revenues. It is the difference in revenues among two (2) alternatives, which would influence decision making.

3. The benefits sacrificed when one alternative is chosen over another are referred to as opportunity costs. It is also referred to as alternative forgone.

<em>For example, Tony gives up going to see a new movie at the cinema in order to prepare for an examination, so as to get a good grade</em>.

8 0
3 years ago
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