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
zloy xaker [14]
3 years ago
9

The FabulousHI Company expects a constant growth in earnings and dividends of 2.5%/year into the foreseeable future. It is expec

ted that the next dividend paid to stockholders will be $1.20/share. Currently the market of investors is demanding or requiring 7% on this investment.a) What is the current value of the stock?b) What is the capital gains yield on this stock?
Business
1 answer:
Lunna [17]3 years ago
7 0

Answer:

a. $26.67

b. 2.50%

Explanation:

a. Computation of the current value of the stock is given below:-

Price of stock ÷ Required rate of return - Growth rate

= $1.20 ÷ (0.07 - 0.025)

=  $1.20 ÷ 0.045

= $26.67

b. Computation of capital gains yield on this stock is shown below:-

= Required rate - Dividend yield

= 7% - ($1.20 ÷ $26.67)

= 7% - 0.04499

= 2.50%

You might be interested in
Alternative price indexes
cluponka [151]

Answer:

-value of all goods and services produced in the economy this year

-this year's prices

-value of all goods and services produced in the economy this year

-the base year's prices

-bought by consumers

-the first scenario would have effect on the GDP deflator

-the second scenario would have effect on the GDP deflator

Explanation:

The GDP deflator is used in measuring inflation in the economy by measuring changes in prices of goods in the economy. It is used together with other indices such as consumer price index in arriving at a more accurate or balanced measurement of inflation I'm the economy. The GDP deflator would be affected above because it is more comprehensive in it's calculation or measurement as it doesn't take into account only a basket of goods and services like the Consumer price index does

6 0
3 years ago
Which one of the following is a primary market transaction? Group of answer choices Sale of currently outstanding stock by a dea
trapecia [35]

Answer:

sale of a new share of stock to an individual investor

Explanation:

Securities are created in the primary market. With an IPO which stands for initial public offering, new stocks are sold to the public by companies on a first time basis.

The sale of a new share of stock in the question is an example of a primary market transaction.

6 0
3 years ago
Read 2 more answers
Ben White is the manager of a retail store. His work typically includes the routine, day-to-day interactions with customers and,
lubasha [3.4K]

Answer:

c

Explanation:

because he has to do a little of eveything

3 0
3 years ago
Identify and explain three reasons that an artist would elect to present content through abstract or non-representational form,
alexira [117]
There are at least 3 reasons why an artist would represent their ideas in abstract form. First, they may try to show the essential form or shape of the subject matter as in some paintings of the Group of Seven or Emily Carr in Canada in portraying snowy mountains or forests for example. Then, they may show disfigured people and horses screaming their outrage and dismay at being bombed like the painting of Guernica by Picasso to show outright rejection of the terrible bombing of Guernica in Spain by the Nazis in WWII. Also, color in an abstract painting can show the emotions of the painter such as in dark forests by Emily Carr to capture the feeling of being inside a dense forest of being closed in yet surrounded by wonderful vegetation.
6 0
3 years ago
Lacey Company prepared the tabulation below at December 31, 2022. Net Income $310,000
valentinak56 [21]

Answer:

Net cash provided by operating activities is $325,000.

Explanation:

Lacey Company

Cash Flow Statement (Operating Activities Only)

December 31, 2022.

<u>Details                                                                       Amount ($)</u>

Net Income                                                                   310,000

Depreciation expense                                                  45,000

Increase in accounts receivable                                 (55,000)

Decrease in inventory                                                   12,000

Increase in accounts payable                                        6,000

Increase in prepaid expenses                                      (4,000)

Decrease in income taxes payable                               3,500

Gain on disposal of land                                                <u> 7,500 </u>

Net cash provided (used) by operating activities  <u> 325,000 </u>

5 0
3 years ago
Other questions:
  • Faced with incomplete information about the future national economic conditions, many employers have eschewed the tradition of h
    14·1 answer
  • Most manufacturers today shy away from using global sourcing owing to the growing concerns over issues related to quality.
    7·1 answer
  • Find the perimeter<br>of the woods.<br>6 km<br>45 km<br>P<br>=<br>3 km​
    9·1 answer
  • Kaycom, Inc. reports the following information:
    7·1 answer
  • 4) An investor has $60,000 to invest in a $280,000 property. She can obtain either a $220,000 loan at 9.5 percent for 20 years o
    5·1 answer
  • A set of servers, that your project needs, has a daily lease cost of $500 for the first 20 days and the lease cost is reduced to
    7·1 answer
  • A company is considering two investment projects. If they use the total project approach and the differential approach, both app
    14·2 answers
  • The intention of a price floor is to help producers by setting a higher than equilibrium price. What is one unintended consequen
    13·1 answer
  • A hospital arranges with a third-party payer to charge the third party 85 percent of its established billing rates. During Janua
    5·1 answer
  • Reporting revenues only when cash is received and expenses only when cash is paid is called the basis of accounting. True or fal
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!