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MA_775_DIABLO [31]
3 years ago
8

Llano’s stock is currently selling for $50.00. The expected dividend one year from now is $1.50, and the dividend growth rate is

constant at 7%. Assuming the constant dividend growth model is appropriate, what is investor's required rate of return? what is dividend yield? what is the capital gains yield?
a) Can't decide based on the information
b) 10%,7%,7%
c) 10%, 3%, 7%
d) 7%, 7%,7%
Business
1 answer:
FinnZ [79.3K]3 years ago
4 0

Answer:

correct option is c) 10%, 3%, 7%

Explanation:

given data

currently selling = $50.00

expected dividend = $1.50

dividend growth rate  = 7%

solution

we get here Required return that is express as

Required return = (expected dividend ÷ Current price) + Growth rate  ...........1

put her value and we get

Required return = \frac{1.5}{50} + 0.07

Required return = 10%

and

now we get Dividend yield that is express as

Dividend yield = Dividend ÷ Current price    ...........2

put here value we get

Dividend yield = \frac{1.5}{50}

Dividend yield = 3%

and

Capital gains yield = Growth rate

Capital gains yield  = 7%

so correct option is c) 10%, 3%, 7%

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Gentle Ben's Bar and Restaurant uses 6,700 quart bottles of an imported wine each year. The effervescent wine costs $4 per bottl
Marat540 [252]

Answer:

a. The answer is:762 bottlé.

b. The answer is: 487 bottles.

Explanation:

a. The economic order quantity is calculated as: \sqrt{(2xDxS/H)} = \sqrt{2 x 6968 x 25)/0.6 = 762 units because: D = annual demand = Weekly demand x week opening per year = 134 x 52 = 6968; S = Cost per order = 25; H = Holding cost per unit = 15% x purchase price = 15% x 4 = 0.6

b. Inventory level to place order:

With the inventory system providing a 95 percent service probability, z level is 1.64 (using the NORM.S.INV function in excel).

So Inventory level to place order = 134 * 3 + 1.64 * 30 * 3^0.5= 487 bottles.

7 0
3 years ago
Rachel is on her way to an interview for the position of a project manager. She is trying to prepare for this interview by analy
anzhelika [568]

Answer:

B) she was very calm under pressure

Explanation:

A project manager is a designation in which the management and the responsibility of the entire project lie in the hands of an individual. The responsibilities of planning, running and the execution of the project is undertaken by the project manager.

From the given options, the soft skill of keeping very calm under pressure will be the most relevant for Rachel. All the other three options are the skills relevant for a specific proficiency in the technical field. To be a project manager, calmness, and efficiency to work under pressure is required.

6 0
3 years ago
According to the survey article on mergers by Mukherjee et al,
lorasvet [3.4K]
I think it’s d but not sure
5 0
3 years ago
Pell Corporation manufactures computers. Assume that Pell allocates manufacturing overhead based on machine hours estimated 10,0
Contact [7]

Answer:

exist 139,200

Explanation:

Assume that Pell allocates manufacturing overhead based on machine hours, estimated 10,000 machine hours and exist 87,000 that implies that the standard cost per machine hour = exist 87,000 / 10,000 = 8.7 exist

Therefore the manufacturing overhead costs if Pell actually used 16,000 machine hours will be: 16000 x 8.7 = exist 139,200

8 0
3 years ago
Cleveland Company purchased $2,700 of inventory on account from Pinto Industries on March 8th. The terms were 2/15, n/45. Clevel
Gala2k [10]

Solution:

Accounts Payable          $2900

Cash                                $2691

Inventory                         $209

Cleveland didn't pay during the discount period,  

So the amount due is $2,700 - 450 = $2,250

Cash was charged in freight charges prior to delivery of the invoice.

4 0
2 years ago
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