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brilliants [131]
2 years ago
15

Stocks X and Y have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the f

ollowing statements is CORRECT?
X Y
Price $30 $30
Expected growth (constant) 6% 4%
Required return 12% 10%
A. Stock Y has a higher dividend yield than Stock X.
B. One year from now, Stock X's price is expected to be higher than Stock Y's price.
C. Stock X has the higher expected year-end dividend.
D. Stock Y has a higher capital gains yield.
E. Stock X has a higher dividend yield than Stock Y.
Business
1 answer:
Lapatulllka [165]2 years ago
7 0

Answer:

B. One year from now, Stock X's price is expected to be higher than Stock Y's price.

Explanation:

Hope it helped...Please mark brainliest. Have a nice day!

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Suppose the benefit of owning a painting, in terms of your personal enjoyment, is worth 5% of the value of the painting. If the
Julli [10]

Answer:

7%

Explanation:

It would grow by 7% each year which is the rate of return on stocks

4 0
3 years ago
Engineers for The All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output
Trava [24]

Answer:

the average cost to reduce

Explanation:

In this situation, when The All-terrain Bike Company increases input (capital and labor) and this causes a proportional increase in output, this scenario The All-terrain Bike Company experiences is called a constant returns to scale which gives rise to decreased average costs.

This happens because buying larger quantity of inputs gives rise to a reduced cost of purchase because these things are being bought in bulk.

7 0
2 years ago
Read 2 more answers
A company has issued 100,000 options of which 50,000 are "in the money at an average exercise price of $15.00. The Company’s sto
nikitadnepr [17]

Answer:

20,000 shares

Explanation:

The computation of given question is shown below:-

Dilutive number of shares:-

Proceeds from the options issue = 50,000 × $15

= $750,000

Shares issued = 50,000

Treasury shares purchased from proceeds of the options

= ($750,000 ÷ $25)

= 30,000

Dilutive number of shares outstanding = Shares issued - Shares purchased back

50,000 - 30,000

= 20,000 shares

8 0
3 years ago
Immediately after taking office, President Roosevelt responded to the banking crisis by a restoring the gold standard to guarant
gulaghasi [49]

E:Managing the currency by closing down banks for a period of time

7 0
3 years ago
Vivian goes to an auction and sees a rare antique lamp that is an identical match to one she already has. At the proper time she
Verdich [7]

Answer:

Most auctions are without reserve and therefore the auctioneer cannot withdraw the lamp.                        

Explanation:

Every auction seems to be either "of-reserve" versus "without-reserve." So the reaction to whether an auction house manages higher bids depends on that form of bidding being carried out. In an offering with reserves, the auction house may reject a higher offer (retain the privilege to reject ...) in which any better bid should be approved in an offering without deposit.

Put differently, the auction house is not obliged to deliver to the top purchaser in a with reserved sale. Essentially, the next bigger raise reflects the minimum price.

6 0
3 years ago
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