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Serhud [2]
3 years ago
6

In a 1988 study, Fama and French found that the return on the aggregate stock market was __________ when the dividend yield was

higher.A. higherB. lowerC. unaffectedD. more skewed
Business
1 answer:
Lisa [10]3 years ago
6 0

Answer:

A. higher

Explanation:

Fama And French did the risk factor study on stock, which clearly stated that when there is a high dividend yield then the stocks would perform good even in the market.

thus, this clearly reflects that when the market is high for stock returns then the dividend yield is also high.

This is basically the proportional reaction, as when the stock return is higher whether in terms of value addition or cash returns then only the dividend return would also be higher.

Correct option in this case will be:

A. Higher.

You might be interested in
Bundling:__.
Cerrena [4.2K]

Answer:

c

Explanation:

Bundling is when separate products of a company are combined together and sold to customers usually at a lower price

6 0
3 years ago
Wanda takes $3,000 from her savings account that pays 5 percent interest per year and uses the funds to purchase a computer for
Salsk061 [2.6K]

Answer:

$1,150

Explanation:

Implicit rental rate refers to the cost that a company incurred by spending money as opposed to what that money could earn if it were invested in something else. Therefore since in a year the computer was worth $1000 less and Wanda also lost out on the 5% that the savings account would have generated which would be $150. Then her total cost is that of $1,150

7 0
3 years ago
Assume that Zonk is a potential leveraged buyout candidate. Assume that the buyer intends to put in place a capital structure th
vekshin1

Answer:

A.8.85%

Explanation:

Computation to determine the weighted average cost of capital for Zonk based on the new capital structure.

First step is to calculate the Cost of equity capital using this formula

Cost of equity capital = Risk free rate + (Beta*Market premium)

Let plug in the formula

Cost of equity capital = 2.3% + (1.13*5.3%)

Cost of equity capital=8.28%

Now let determine theWeighted average cost capital

Weighted average cost capital = [.70*.14*(1-.35)]+(.30*.0828)

Weighted average cost capital= [.70*.14*.65]+.02484

Weighted average cost capital=0.0637+.02484

Weighted average cost capital= .0885*100

Weighted average cost capital= 8.85%

Therefore the weighted average cost of capital for Zonk based on the new capital structure is 8.85%

4 0
3 years ago
...........................................
Novay_Z [31]
Dotdotdotdotdotdotdotdotdotdotdotdot
3 0
3 years ago
What is the formal agreement between two or more countries trade,peace and other matters called?
Arlecino [84]
Pretty sure its a treaty

5 0
3 years ago
Read 2 more answers
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