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aniked [119]
3 years ago
15

Suppose you know that a company’s stock currently sells for $66.50 per share and the required return on the stock is 9 percent.

You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
Business
1 answer:
garik1379 [7]3 years ago
4 0

Answer:

$2.86

Explanation:

The computation of current dividend per share is shown below:-

Dividend yield = 9% × 2

= 4.5%

Current price = Company stock × Dividend yield

= $66.50 × 4.5%

= 2.9925

Current dividend per share = Current price ÷ (1 + Dividend yield percentage)

= 2.9925 ÷ (1 + 0.045)

= 2.9925 ÷ 1.045

= $2.86

So, for computing the current dividend per share we simply applied the above formula.

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Answer:

P(E1)=\frac{20}{50}=0.4

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I used the relative frequency method

Explanation:

To solve this question we can use the relative frequency to find out each probability. The relative frequency is the ratio of the occurrence of each event and the total number of outcomes.

Here the experiment has been repeated 50 times, so that is the total number of outcomes and the denominator. There are 3 possible events E1, E2, and E3, so we can calculate the ratios to get the probabilities

Event E1 occurred 20 times of the 50: P(E1)=\frac{20}{50}

Event E2 occurred 13 times of the 50: P(E2)=\frac{13}{50}

Event E3 occurred 17 times of the 50: P(E3)=\frac{17}{50}

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3 years ago
Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated
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Answer:

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