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
Pie
2 years ago
10

The next dividend payment by Savitz, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6

percent forever. If the stock currently sells for $42 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
2 answers:
zavuch27 [327]2 years ago
8 0

Answer:

Required return for Savitz: 10.95%

Explanation:

<u>Considering the gordon model we have to solve for the cost of capital (Ke)</u>

\frac{divends}{return-growth} = Intrinsic \: Value

\frac{divends}{Price} = return-growth

\frac{divends}{Price} + growth = return

$Cost of Equity =\frac{D_1}{P)} +g

D1 2.08

P 42

g 0.06

$Cost of Equity =\frac{2.08}{42} +0.06

Ke 0.10952381

aliina [53]2 years ago
3 0

Answer:

11.21%

Explanation:

The value of the share can be calculated by the Dividend valuation formula, which as under:

r = D1 / Po      + g

By putting values we have:

r = $2.08 / ($42 - $2.08)Ex div share price + 6%

r = 11.21 %

You might be interested in
"Kim wants to run for the U.S. Senate. Kim experimented with drugs in the 1960s, but has not used any drugs in more than 45 year
marishachu [46]

Answer:

The communication behaviour that kim is engaged in is selective self-disclosure.

Explanation:

Self-disclosure is a process of communication by which one person reveals information about themselves to another. The information can be descriptive or evaluative, and can include thoughts, feelings, aspirations, goals, failures, successes, fears, and dreams, as well as one's likes, dislikes, and favorites.

Selective self-disclosure means self-disclosure but providing only that information which will create a positive image of one person on another.

6 0
3 years ago
Which is not a reason why a company might decide to set up facilities in another country
olga_2 [115]

The Correct answer is B "TO INCREASE TARIFFS" Tariffs are a tax that a country puts on goods imported, that means if you moved to a different country your company would have to pay the tariffs, so to combat the price of tariffs, and why they moved in the first place, the rest of the answers would be correct. Because it must be cheaper.

7 0
3 years ago
During 2010, raines umbrella corp. had sales of $850,000. cost of goods sold, administrative and selling expenses, and depreciat
I am Lyosha [343]
To calculate: 
1) Net income (loss) for 2010.
 2) Operating cash flow 
 Solution: 1)
 Sales = $850000
 Less: Cost of goods sold = $610000
  Gross profit = $240000
 Less: Administrative and selling expenses = $110000 
 Earning before Interest, Tax and Depreciation = $130000
 Less: Depreciation = $140000
  Earning before Interest and Tax (EBIT) = ($10000)
 Less: Interest expense = $85000
  Earning before tax (EBT) = ($95000)
 Less: Tax = $0 (as company is having negative EBT or loss hence no tax)

 
 Net loss = $95000  
 2) Operating cash flow 
 EBIT + Depreciation - Tax 
 Wherein, EBIT = Earning before Interest and Tax
  ($10000) + 140000 - 0 = $130000
4 0
3 years ago
Cyclical unemployment refers to A. the portion of unemployment created by job search. B. the portion of unemployment created by
myrzilka [38]

Answer:

i pretty sure its c but if it wrong just let me know

Explanation:

it pretty much makes sence

can i get brainlest

6 0
3 years ago
Acme, Inc., which manufactures the fireworks that municipal governments buy to put on their annual fireworks shows on the Fourth
kap26 [50]

Answer:

Reshoring.

Explanation:

Reshoring is the process of returning the production and manufacturing of goods back to the company's original country. Reshoring is also known as onshoring, inshoring or backshoring.

7 0
2 years ago
Other questions:
  • A "good," according to the UCC is all of the following EXCEPT _____.
    9·1 answer
  • A consumer is someone who uses goods and services.<br> True<br> False
    5·2 answers
  • The use of mathematical tools such as the application of linear programming for optimizing operations and the statistical proces
    9·1 answer
  • MC Qu. 1-130 A company's financial records at the end.
    7·1 answer
  • An outward shift of a nation's production possibilities curve: a. does not ensure the nation of an increase in real GDP. b. ensu
    10·2 answers
  • You can expect that an investment could gain or lose as much as 20% in a year. Your investment is $5,000. What is the lowest val
    11·1 answer
  • What does a general disk cleanup do?
    11·1 answer
  • If you have $600 and you find an investment that annually yields 3%, how much interest would you earn in 15 years?
    15·1 answer
  • according to age-earnings data, group of answer choices high earnings are due to motivation and innate ability, rather than educ
    14·1 answer
  • joel is upset as he reads an email message from his supervisor. when he discusses the message with a coworker he distorts what t
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!