1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andrews [41]
4 years ago
10

Steve's Cider Shack, Inc. just paid a dividend of $8 per share of common stock. The dollar amount of the dividends is expected t

o grow at a constant 2% per year definitively into the future. The required rate of return from shares of common stock from similar businesses in the current economic climate is 13%
What would you expect the current market price of a share of Steve's Cider Shack common stock to be?

Assuming the cash dividend amount and the growth rate are accurate, what is the annual rate of return on your investment in Steve's stock if you purchased shares for $63 per share?
Business
1 answer:
mamaluj [8]4 years ago
8 0

Answer:

Check the following calculation

Explanation:

Current price : D0(1+g)/(Rs-g)

                  8 (1+.02)/(.13-.02)

                  8* 1.02 / .11

                   = $ 74.18 per share

2) Dividend: 8(1+.02) = 8.16

Annual rate of return : [P1- P0+D ]/P0

             [74.18 - 63 + 8.16 ]/63

                19.34/63

                  .3070 or 30.70%

You might be interested in
Bachelor’s degrees are typically earned in _____.
WARRIOR [948]

Answer:

A bachelor degree is typically earned between 3 and 4 years. Many schools require students to complete about 40 courses or 120 credit hours.

8 0
3 years ago
Read 2 more answers
Bamba Corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. For the mont
Oksanka [162]
I think it is D
Hope my answer help you
4 0
3 years ago
A car manufacturer ordered 20,000 window assemblies from a supplier. To make sure the assemblies were made to specifications, th
snow_tiger [21]
The answer is “Feedforward”
8 0
3 years ago
What type of competition exists in the aviation sector? And why?
shtirl [24]

Answer:

Oligopoly market structure

Explanation:

The airline industry is characterized by an oligopoly market structure, a form of imperfect competition in which a limited number of firms dominate the industry. Oligopoly firms have market power in setting or altering prices for their products by establishing various output values.

8 0
3 years ago
"which targeting strategy focuses on common consumer​ needs, as opposed to different​ needs?"
belka [17]
Mass Marketing is the targeting strategy that focuses on common consumer needs, as opposed to different needs. The main focus with mass marketing is to promote a good or service to a large audience that will appeal to as many consumers as possible. 
3 0
3 years ago
Other questions:
  • Indra nooyi, ceo and chairman of pepsico is considered the most powerful woman on fortune’s 50 most powerful women’s list, uses
    10·1 answer
  • 1st attempt Jung is willing to pay $85 for a new jacket that sells for $70. Eddie is willing to pay $65 for that same acket. Wha
    12·1 answer
  • Look at the table the utility of macaroni and cheese. carmen loves macaroni and cheese for thanksgiving. carmen's marginal utili
    15·1 answer
  • Mr. Yamane plans each mathematics unit beginning with a set of outcomes specifying what he wants the students to achieve, based
    6·1 answer
  • Using – to control rule-making agencies and increasing the size of the – staff have allowed presidents to use the administrative
    5·1 answer
  • Security frameworks establish behavior expectations and define policy. Policies cannot address every scenario employees will fac
    14·1 answer
  • Elisa truly believes that she is a space alien from the planet Zellnor. She walks into a car dealership and buys a new Volkswage
    13·1 answer
  • A1 Co. has a process costing system. All materials are added when the process is first begun. At the beginning of May, there wer
    8·1 answer
  • pppppppppppppooooooooooooooooooooooooooooooooooooooooiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnttt
    6·2 answers
  • Valley Technology Balance Sheet As of January 24, 2021 (amounts in thousands)
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!