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omeli [17]
2 years ago
13

"Expected Return Ecolap Inc. (ECL) recently paid a $0.46 dividend. The dividend is expected to grow at a 14.5 percent rate. At a

current stock price of $44.12, what is the return shareholders are expecting
Business
1 answer:
skad [1K]2 years ago
4 0

Answer:

  • <u>15.7%</u>

Explanation:

The <em>price</em> of a <em>stock</em> can be modeled by the present value of the stream of future <em>dividends</em> discounted at a rate equal to the<em> return expected</em>.

The equation, when the dividends are expected to <em>grow</em> at a constant rate, less than the return rate is:

        Price_0=\dfrac{Div_1}{r-g}

Where:

  • Price₀ is the <em>current price</em>: $44.12
  • Div₁ is the <em>dividend </em>to be paid a year from now: $0.46 × 1.145 = $0.53
  • g is the expected constant <em>growth rate</em>: 14.5% = 0.145
  • r is the <em>expected return</em>

Then, you can solve for r:

      r=\dfrac{Div_1}{Price_0}+g

        r=\dfrac{\$ 0.53}{\$ 44.12}+0.145=0.157=15.7\%

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Answer:

Overhead absorption rate

= Overhead absorbed/Actual labour cost x 100

= $4,400/$800  x 100

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Explanation:

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3 years ago
Lotoya Davis Corporation has 10 million shares o common stock issued and outstanding. On June 1, the board of directors voted an
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Answer:

June 1st:

Retained Earnings (Dr.)                 $8,000,000

Dividends Payable (Cr.)                $8,000,000

June 30th

Dividends Payable (Dr.)               $8,000,000

Cash (Cr.)                                      $8,000,000

These entries will remain same even in the case of liquidating dividend.

Explanation:

On June 1st the dividend is declared so the journal entry will be

Retained Earnings (Dr.)                 $8,000,000

Dividends Payable (Cr.)                $8,000,000

There will be no journal entry on June 14th.

On June 30th the dividend is paid:

Dividends Payable (Dr.)               $8,000,000

Cash (Cr.)                                      $8,000,000

The entry would not have differed if it was a liquidating dividend.

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Answer:

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Based on the information provided within the question it can be said that in this scenario Scott has conceptualized the concept of "minority owned". This term refers to when an individual creates an abstract but very simplified view of something. Which in this case he gave the term "minority owned" a simplified definition of being only owned by women or African Americans, when there can be many other minorities in a certain area.

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2 years ago
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Price matching and Shipping directly are trends office supplies and Best Buy offers, which can compete with ratailers online who sells similar products.

<h3>What is marketing?</h3>

Marketing refers to the process of getting people interested in a company's product or service. It is a process a company undertakes to promote the buying or selling of a product or service.

The essence is to create awareness of the product to potential buyers so that they can purchase the products.

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