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3 years ago

What is the expected return if a firm has a payout ratio of 0.4, a return on equity of 25%, and a dividend yield of 6%

Business

1 answer:

Varvara68 [4.7K]3 years ago

6 0

Answer:

21%

Explanation:

We can calculate the expected return of a firm by add dividend yield and growth rate but in this question, the growth rate is not given therefore we will find growth rate first with the available data

DATA

Payout ratio = 0.4

Return on equity = 25%

Dividend yield = 6%

Solution

Growth rate = Return on equity x retention ratio

Growth rate = Return on equity x (1 - payout ratio)

Growth rate = 25% x (1-0.4)

Growth rate = 25% x 0.6

Growth rate = 15%

Expected return = Dividend yield + growth rate

Expected return = 6% + 15%

Expected return = 21%

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Answer:

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Explanation:

Genetically engineered crops couldn't harm the economy. They are made to benefit economy, as it's shown in the following quote:

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3 years ago

The pay rates in the organization may not match the pay structure in the market when a company sets its pay rates based strictly

Grace [21]

There are discrepancies between the pay rates of a company and the pay structure in the market when a company sets its pay rates strictly based on a pay policy line.

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In business management, discrepancies would generally exist between the pay rates of a company and the pay structure in the market when a company sets its pay rates strictly based on a pay policy line.

Read more on pay rate here: brainly.com/question/4443190

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2 years ago

The director of hr at multimedia corporation is concerned about some stereotyping which has occurred in the work environment. to

alex41 [277]

To combat this stereotyping the HR director has decided to "adopt more transparent practices".

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4 years ago

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Free_Kalibri [48]

Answer:

The correct answer is: in all decision making.

Explanation:

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3 years ago

Embezzlers who manipulate accounting records to conceal their fraud (or theft of assets) most often ____.Group of answer choices

Bingel [31]

Answer:

."Balance" the accounting equation by increasing expenses.

Explanation:

If an organization wants to manipulate its accounting records so that it could conceal their fraud so the best way is to balance the accounting equation by increasing the expenses so no one can judge it and they can fulfill their objective

Here,

Accounting equation is

Total assets = Total liabilities + stockholder equity

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So in the given case, the same method is applied

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3 years ago