Answer:
14.90%
Explanation:
We know,
Current stock price, =
Given,
Current stock price, = $12.00
growth rate, g = 9.50% = 0.095
Expected annual dividend, = $0.65
We have to determine the expected rate of return ().
Putting the values into the above formula, we can get,
Current stock price, =
or, $12.00 = $0.65 ÷ ( - 0.095)
or, $12.00 × ( - 0.095) = $0.65
or, - 0.095 = $0.65 ÷ $12.00
or, - 0.095 = 0.0542
or, = 0.054 + 0.095
Therefore, = 0.149
The expected rate of return = 0.149 or 14.90%
Answer:
The corect option is C)
In the case study above, the Average daily number of new accounts is the reponse variable while the Interest rate is the explanatory variable.
Explanation:
Response variables are factors which are being observed to see how and whether or not they change. They are usually susceptible to "stimuli" or "stimulus".
Explanatory Variables, on the other hand, are the "stimuli" or "stimulus" in the equation. They are the factors in the equation which may or may not affect the response variable. When plotting graphs the former is situated on the Y-Axis and the latter on the X-Axis.
Cheers!
Answer:
Total assets is increased by $18,100
Explanation:
The computation is shown below:
= Cash received from the issue of stock + revenue earned on account - cash paid for operating expenses
= $15,000 + $8,500 - $5,400
= $18,400
This positive amount shows that there is an increase in the total assets for $18,100
The cash collected from the account receivable is not relevant. Hence ignored it
Answer: statement A, The risk of hostile takeover.
Explanation: As the value of the firm in market becomes even less then its book value the investor or purchasers in the market do not have to pay even the net worth of the firm. Thus, it becomes an attractive target in the eye of market investors. In such a situation the board of directors might reject the offers but the bidder will continue to persuade them for acquisition.
Answer:
Explanation:
Dividend yield formula = Dividend / Price
Dividend = $2.80
Price = $49.20
Dividend yield = 2.80/49.20 = 0.0569
Dividend yield = 5.69%
Capital gains yield (CGY) = Next year's price-Current price / current price
Next year's price(P1) = 49.20*(1+0.0725)
P1 = $52.77
CGY = (52.77-49.20) / 49.20
CGY = 3.57/49.20
CGY = 0.0726
Therefore, capital gains yield = 7.26%