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
Valentin [98]
3 years ago
10

An issue of common stock is expected to pay a dividend of $3 at the end of the year. Its growth rate is equal to 3%, and the cur

rent share price is $40. What is the required rate of return on the stock
Business
1 answer:
irinina [24]3 years ago
6 0

Answer:

r = 10.5%

Explanation:

Using Dividend growth model, we have the following equation:

P = D(1) / r - g

P: Stock price ($40)

D(1): Year end dividend ($3)

g: Dividend growth rate (3%)

r: required rate of return (Missing value)

By inputting numbers into the equation, we have:

40 = 3 / r - 0.03

--> r = 10.5%

You might be interested in
john chapelle wants to know if his video store customers are interested in a selection of classic, black and white movies. how c
jeka57 [31]
It is important to keep the questionnaire really short, probably just one good question or a checkbox list would suffice. Hand out the questionnaire once they buy or rent the cds/dvds at the counter. They shall answer it out while you process the receipt and give change. This should come around smoothly and won't be much of a hassle for the customer.
4 0
3 years ago
LinkedIn is an example of a(n).<br> app?
UkoKoshka [18]

Answer: Linkedln is an example of an app, yes.

Explanation:

6 0
3 years ago
Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is
sasho [114]

Answer:

$25,800

Explanation:

The units-of-production deprecation method depreciates an asset based on the total units produced each year.

Unit of production depreciation expense = (units produced / total expected units of production) × (cost of asset - salvage value)

(64,500 / 300,000) x ($135,000 - $15,000)

0.215 x $120,000 = $25,800

I hope my answer helps you

6 0
3 years ago
Please someone help me..
grandymaker [24]

already answered this question for you in a previous post.

8 0
3 years ago
What law says that borrowers must receive a good faith estimate of the closing costs within three business days of the loan appl
Dmitry_Shevchenko [17]

The answer is the Real Estate Settlement Procedures Act or RESPA. This act was intended to defend possible property holders and allow them to become more intelligent consumers. RESPA necessitates that creditors provide bigger amounts of information to potential borrowers at certain points in the loan settlement process. It also forbids the innumerable parties involved from paying kickbacks to each other.

5 0
4 years ago
Other questions:
  • Cullumber Company took a physical inventory on December 31 and determined that goods costing $514,000 were on hand. Not included
    13·1 answer
  • During Year 1, Pang Enterprises experienced the following events.
    14·1 answer
  • A(n) ______close to a cover letter leads to more interviews because you are contacting the employer.
    9·2 answers
  • An expense resulting from failing to take advantage of cash discounts when using the net method of recording purchases is called
    13·1 answer
  • Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The com
    10·1 answer
  • Project _____ management includes estimating how long it will take to complete work, develop an acceptable project schedule, and
    11·1 answer
  • Your homework routine should include all of the following except
    8·2 answers
  • Using websites such as the U.S. Census Bureau is an example of what type of data source?
    11·2 answers
  • Explain which of the 5 Management Functions is your strength and weakness? Planning, Organizing, Staffing, Implementing, and Org
    5·1 answer
  • simon and jeffrey are a married couple. they had taken title of a condo before they married with simon owning 30% and jeffrey ow
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!