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levacccp [35]
3 years ago
14

Hirshfeld Corporation's stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expect

ed to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1?a. $2.20b. $2.44c. $2.69d. $2.96e. $3.25
Business
1 answer:
butalik [34]3 years ago
3 0

Answer:

Expected dividend will be $2.44

So option (b) will be correct option

Explanation:

We have given required rate of return = 10.25 % = 0.1025

Value of stock= $57.50

Growth rate = 6 % = 0.06

We have to find the expected dividend

We know that cost of stock is given by

cost\ of\ stock=\frac{D_1}{r_s-g}, here D_1 is expected dividend r_s is return ratio and g is growth rate

So 57.50=\frac{D_1}{0.1025-0.06}

D_1=$2.44

So option (b) will be correct option

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Option A

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comparing the return to the return on invested capital obtained by other firms in the industry

Option C talks about balancing Assets & liabilities

Option D talks about history of the firm without considering history of other rival companies

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Answer:

Negotiation.

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However, if such individual refuses to exercise his or her powers as stated above, it would generate a conflict due to the fact that processes that are fundamental for the smooth running of the system or business would not take place.

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5 0
3 years ago
How does the concept of scarcity affect economic decision making?
GuDViN [60]

Answer:

The ability to make decisions comes with a limited capacity. The scarcity state depletes this finite capacity of decision-making. ... The scarcity of money affects the decision to spend that money on the urgent needs while ignoring the other important things which comes with a burden of future cost.

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4 years ago
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zaharov [31]

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i would buy them

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5 0
3 years ago
Read 2 more answers
Adrian's Premium Boxing Service subcontracts with a chocolate manufacturer to box premium chocolates for their mail order catalo
vodka [1.7K]

Answer:

b). $ 150

Explanation:

Given that,

Rent of the room per week = $ 150

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To find,

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<u>Procedure</u>:

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