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lora16 [44]
3 years ago
5

Mitchell, Inc., is expected to maintain a constant 6.05 percent growth rate in its dividends, indefinitely. If the company has a

dividend yield of 4.55 percent, what is the required return on the company’s stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return %
Business
1 answer:
Mashutka [201]3 years ago
5 0

Answer:

Required Return = 10.60%

Explanation:

If there is no dividend and stock price in a question, then we have to calculate it from the required return's point of view.

The required return of a stock is the combination of two parts - dividend yield and a capital gain of dividend yield.

Therefore, the formula is,

The required return of the stock = Capital gains yield + dividend yield

Here, the dividends growth rate is the capital gains yield, therefore,

Required return of the stock = 6.05% + 4.55%

The required return of the stock = 10.60%

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In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, plan
alina1380 [7]

Answer:

B) 1,160.

Explanation:

First we must calculate planned aggregate expenditures (PAE) and then determine where Y = PAE:

PAE = consumption + planned investment + government spending + net exports = 100  + 0.75(Y - 40) + 50 + 150 +20 = 100 + 0.75Y - 30 + 50 + 150 + 20 = 290 + 0.75Y

Now we must determine where Y and PAE intercept:

Y = 290 + 0.75Y

Y - 0.75Y = 290

0.25Y = 290

Y = 290 / 0.25 = 1,160

*Planned aggregate expenditure = total planned spending, it differs from GDP because GDP includes unplanned investment.

PAE = C + Ip + G + NX   while  GDP = C + I + G + NX

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3 years ago
Macro economic misery diminished during the first reagan administration, which means that the phillips curve'
tensa zangetsu [6.8K]
Had to look for the options and here is my answer. What it means when there is a decrease in the Macro economic misery during the first Reagan administration is that the Phillips Curve has shifted from right to left. This implies that there is an ease of the trade-off between the unemployment and inflation. Hope this answer helps.
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Gathering information with your eyes is called
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Answer:

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Answer:

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