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7nadin3 [17]
2 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]2 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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Answer:

Energy and Water funding is a crucial part of the UK government’s carbon emissions responsibility. Finding new ways of funding lower emission energy systems for business is one of the ways that the UK are pushing forward.

Water Capital Grant Scheme

The Water Capital Grant Scheme provides funding of £10 Million to applicants from the farming community, from the land management community and from the agricultural community to deal with water management which is a key issue in the industry. Those running businesses in these areas are able to avail of this scheme and create in-roads in water management.

This is designed to provide support to water management, and will provide £10,000 in a water capital grant to help carry out works which will improve water management and quality. The real focal point of the grant is to improve waterlines around agricultural industry and to reduce the impact of agriculture on the water quality of the surrounding area. The funding is for new projects which will help to move toward this goal, and applicants are able to apply for this through Natural England.

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providing drinking troughs as an alternative to watercourse drinking for livestock

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roofing of sprayer washdown areas, manure storage areas, livestock gathering areas, slurry stores and silage stores

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Work funded by the Catchment Sensitive Farming grant scheme over recent years has already brought efficiencies for thousands of farmers and has enhanced local environments throughout England by improving water quality.

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