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Harlamova29_29 [7]
3 years ago
9

Eastern electric currently pays a dividend of about $1.64 per share and sells for $27 a share.

Business
2 answers:
Dahasolnce [82]3 years ago
7 0

Answer:

9.26%

Explanation:

using the Gordon growth model we can determine required rate of return:

current stock price = (dividends x growth rate) / (required rate of return - growth rate)

  • current stock price = $27
  • dividends = $1.64 x 1.03 = $1.6892
  • growth rate = 3%
  • RRR = ?

$27 = $1.6892 / (RRR - 3%)

RRR - 3% = $1.6892 / $27

RRR - 3% = 6.26%

RRR = 6.26% + 3% = 9.26%

EastWind [94]3 years ago
6 0

Answer:

The investors should expect to 9.26% of Return.

Explanation:

The Dividend Discount Model for Constant Growth should be used here.

DDM = Current Price = Dividend of Year 1 / (Required Return - Growth Rate)

Dividend of Year 1 = 1.64 (1.03) = 1.6892.

Re-arrange the above model for Required Return and put values:

Required Return = (1.6892 / 27) + .03 = .0926 OR 9.26%.

Thanks!  

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Ask questions about culture, but be strategic about it.  

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Gregory knew that he was going to have to pay a premium for buying a home in a certain area but was determined to do so because
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The characteristic of value that is represented here is <u>C. Situs.</u>

<h3>What is Situs?</h3>

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<h3>Answer Options:</h3>

A. Scarcity

B. Nolo Contendere

C. Situs

D. Caveat Emptor

Thus, the characteristic of value represented in this scenario is not scarcity, nolo contendere, or caveat emptor, but <u>Option C. Situs.</u>

Learn more about the location of a real estate at brainly.com/question/26010601

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2 years ago
In the​ swim-lane format of a business process​ model, all​ _______ for a role are included in that​ role's swim-lane.
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<span>In the​ swim-lane format of a business process​ model, all​ activities for a role are included in that​ role's swim-lane.

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Answer:

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Explanation:

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