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
Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Ama
Kryger [21]

Explanation:

The Journal entry is given below:-

1 January 2020             No Entry

31 December 2020       Compensation Expense Dr,         6,580

                                              To, Paid-In-Capital                         6,580

(Being the compensation expense stock-option plan is recorded)

Working Note:-

Compensation Expense

= $7 × 4,700 ÷ 5

= $7 × 940

= $6,580

7 0
2 years ago
Many people are familiar with swot analysis—analyzing strengths, weaknesses, opportunities, and threats—which is used to aid in
ivann1987 [24]
Depression and feel hopeless
8 0
2 years ago
What is the best way to help students use materials successfully in learning centers?
astraxan [27]

The best way to help students demonstrate ways to use materials is when introducing them.

<h3>How can learning centers effectively support students in making effective use of the resources there?</h3>

Create, share, and put procedures into action. The complicated choreography of different students, spaces, and materials that centers entail. Teachers are responsible for developing thorough procedures, explaining them to pupils, and giving them enough time to practice them until they become second nature.

The group with purpose: Centers give students the option to work independently, in groups of their choosing based on interests, or in mixed- or leveled-ability groups. All grouping choices must be deliberate and based on the character and goal of each activity.

Give students meaningful tasks: Centers activities in all subject areas should be engaging, difficult, and, whenever possible, give students a chance to practice skills in real-world contexts. This means that activities should assist students in making connections between their classroom learning and real-world situations or in forming practical habits of mind.

To know more about learning centers, visit:

#SPJ4

3 0
1 year ago
Excess cash is cash that is excess to the operations of a company and is considered "negative debt" because the cash could be us
Harrizon [31]

Answer:

True

Explanation:

Excess cash is a term used in the for the residual cash flow of operation. It is calculated after adding the non cash expenses in the net income of the company and deducting all the capital expenditures. This is the cash balance which is available for the reinvestment purpose and for distribution to the stockholders. This cash can also be used to reduce the gearing of the company and there is a cost attached to it if used for payment of loan, which is the rate or return from the reinvestment of these cash flows.

6 0
2 years ago
Read 2 more answers
Cost of Direct Materials Used in Production for a Manufacturing Company
strojnjashka [21]

Answer:

$855,000

Explanation:

The Raw Materials T - Account can be used to determine the cost of direct materials used in production using the missing balance technique as follows :

Raw Materials T - Account

Debit :

Beginning Balance                                               $279,000

Purchases                                                             $828,000

Total                                                                     $1,107,000

Credit :

Ending Balance                                                    $252,000

Transferred to Production (<em>Balancing figure</em>)     $855,000

Total                                                                     $1,107,000

3 0
3 years ago
Other questions:
  • The administrative model was developed to explain
    6·1 answer
  • A CPA can accept a gift from a client as long as:
    10·1 answer
  • Sam was driving when someone ran a stop sign and totaled his car. his car cannot be repaired, so he realizes he's going to have
    14·1 answer
  • What experience would least demonstrate to an employer that you have the skills to be an assistant to a newspaper reporter?
    6·1 answer
  • Which documents are necessary to calculate ros?
    5·1 answer
  • According to the public choice modelLOADING...​, how do policymakers arrive at their​ decisions? The public choice model suggest
    14·1 answer
  • Gaston Bank had interest revenues of $70 million last year and $30 million in interest expenses. About $300 million of Gaston's
    6·1 answer
  • Greg is planning an advertising campaign to promote his kayak tour company. The success of his ad campaign depends on ________.
    8·1 answer
  • Well-conceived visions are ________ and ________ to a particular organization and they avoid generic, feel-good statements that
    10·1 answer
  • Kelsey Construction has purchased a crane that comes with a 5-year warranty. Repair costs are expected to average $5000 per year
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!