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7nadin3 [17]
3 years ago
5

Suppose you know a company's stock currently sells for $80 per share and the required return on the stock is 14 percent. You als

o know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
Business
1 answer:
nataly862011 [7]3 years ago
8 0

Answer:

The current dividend is $5.23 per share

Explanation:

This return is divided equally between dividend yield and capital gains yield, in other words 7%each (14%/2)

Expected return=current dividend*(1+growth rate)/share price +growth rate

note the growth rate also represents capital gains yield

0.14=CD*(1+0.07)/80+0.07

0.14-0.07=CD*(1.07)/80

0.07*80=CD*1.07

5.6=CD*1.07

CD=5.6/1.07

CD=$5.23

Ultimately the current dividend is $5,23 per share a shown by solving the equation for current dividend above

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​Barrett, Inc. reports the following information for the year ended December​ 31: Beginning Finished Goods Inventory 70 units Un
Dmitry_Shevchenko [17]

Answer:

Operating Income 20,600

Explanation:

First Step will be to calculate the contribution of the begining inventory and the contribution of the untis produced in this period:

BEGINNING INVENTORY

70 units at $150 = $10,500

cost of BI                 $3,600

Contribution Begining Inventory         $6,900

get the production of this year contribution

Sales Units              150

Direct Materials 25

Direct Labour     10

Variable MO       15

Variable S&A       6

Total Variable           56

Contribution            94

Unit produced 450

Contribution Produced units 42300

Second, the operating income:

     Contribution Begining Inventory         $6,900

     + Contribution Produced units             42,300

                                    Total contribution = 49,200

 Fixed Cost

fixed MO 15,600

fixed S&A 13,000

                                       Total Fixed Cost    28,600

                                     Operating Income 20,600

4 0
3 years ago
Careers with adverse working conditions often demand higher wages. Adverse working conditions might include
Zepler [3.9K]

Answer:

uncomfortable environment

Explanation:

Adverse working conditions create challenges for employees as they execute their mandate. These conditions may result from extreme weather, either very hot such, extremely cold, floods, snow, or windy. Adverse conditions could also refer to security concerns in place of work.

Political unrest, high crime rate, and civil wars create adverse conditions. The nature of work can also make working a challenge.  Miners working many feet underground or soldiers on a battlefield are examples of challenges due to work.

4 0
3 years ago
Why did many artisans, manufacturers, and shopkeepers in the middle colonies in the eighteenth century prefer servants' labor ov
dolphi86 [110]

Answer:

they can receive more work for less pay from the servants as opposed to the wage workers

Explanation:

Based on the information provided within the question it can be said that they preferred servants' labor more because they can receive more work for less pay from the servants as opposed to the wage workers. At that time roughly four months of workers' wages would pay for about five or six years of servant labor, thus leading to a massive increase in savings for the employer.

7 0
3 years ago
On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June
zysi [14]

Answer: $86,235

Explanation:

Use Excel or a financial calculator to calculate the bond price.

As the interest is payable semiannually, the relevant variables are:

Coupon = 10% * 100,000 * 1/2 years = $5,000

Yield = 12% / 2 = 6%

Number of periods = 15 years * 2 = 30 semi annual periods

Bond price = $86,235

6 0
2 years ago
In​ manufacturing, excess capacity can be used to A. do fewer​ setups, lengthen production​ runs, and drive down inventory costs
Aleksandr-060686 [28]

Answer:

In​ manufacturing, excess capacity can be used todo more​ setups, shorten production​ runs, and drive down inventory costs

Explanation:

Excess capacity refers to a situation where a firm is producing at a lower scale of output than it has been designed for. Context: It exists when marginal cost is less than average cost and it is still possible to decrease average (unit) cost by producing more goods and services

7 0
3 years ago
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