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
romanna [79]
3 years ago
9

Suppose you know a company's stock currently sells for $80 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 a capital gains yield and a 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:
m_a_m_a [10]3 years ago
7 0

Answer:

The the current dividend per share is $3.45

Explanation:

Solution

Recall that:

A company stock currently sells for =$80

the required return on the stock = 9%

The current dividend per share = ?

Now,

The dividend in year 1 pr D₁=80*(9%/2)=3.6

Thus,

The current dividend per share =3.6/ (1+4.5%)

= 3.45

You might be interested in
The chess club has a goal of 36 new members. so far they have 30. what percent of the clubs goal have they achieved
Harrizon [31]
83.333%
or 5/6 in a calculator. Please give me Brainliest answer. Thank you a bunch.
4 0
4 years ago
How does an economist calculate GDP for one year using the expenditure approach?
ryzh [129]
An economist calculates the GDP for one year using the expenditure approach by adding together all the amounts spent on final goods and services. This also includes investments, government consumptions and net exports. The answer to the question would be choice A.
6 0
3 years ago
Read 2 more answers
What would happen to the buying power of your investment after one year if your rate of return was 8% and the rate of inflation
Anna71 [15]
Dude why did you put this question like 5 times??
4 0
4 years ago
Your firm is thinking about investing ​$200 comma 000200,000 in the overhaul of a manufacturing cell in a lean environment. Reve
Zepler [3.9K]

Answer:

EAW = -$17,545.71

Explanation:

initial investment = $200,000

cash inflows;

  • Year 1 = $33,000
  • Year 2 = $44,000
  • Year 3 = $55,000
  • Year 4 = $66,000
  • Year 5 = $77,000
  • Year 6 = $88,000
  • Year 7 = $99,000
  • Year 8 = $110,000
  • Year 9 = $132,000

cash outflows:

  • Year 1 = $20,000
  • Year 2 = $30,000
  • Year 3 = $40,000
  • Year 4 = $50,000
  • Year 5 = $60,000
  • Year 6 = $70,000
  • Year 7 = $80,000
  • Year 8 = $90,000
  • Year 9 = $100,000

EAW = equivalent annual worth = equivalent annual benefits - equivalent annual costs

to determine the EAB we must first find the PV of the cash inflows using a financial calculator = $408,348.84

EAB = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($408,348.84 x 10%) / [1 - (1 + 10%)⁻⁹] = $70,905.91

to determine the EAC we must first find the PV of the cash outflows (including initial outlay) using a financial calculator = $509,395

EAC = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($509,395 x 10%) / [1 - (1 + 10%)⁻⁹] = $88,451.62

EAW = $70,905.91 - $88,451.62 = -$17,545.71

5 0
3 years ago
"Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer
sweet-ann [11.9K]

Answer:

Explanation:

a) since MR=MC, then 15-2Q=3+Q. So, the monopolist produce Q=4

price P=15-Q=10-4=6

profit=6*3-TC=18-(3+4+0.5*4^2)=3

b)since the P=6=6, domestic production will stay the same. The domestic consumption will stay the same. For Wilknam, it will import soccer balls.

c)yes, it holds that Wiknam will be an importer. Because the price for domestic production is 6 which is same as the world price 6.

d)Since the price within country is the same with price out of country, and also, MC=3+Q=7>6, Wiknam will import soccer balls. The monopolist market will become a competitive market.Even though the price won't change,the product will be of high quality and so on. The market will become more equilibrium.

7 0
3 years ago
Other questions:
  • According to the "Negotiating Family Relationships" website you visited, if you and your siblings receive your allowance accordi
    9·1 answer
  • A sporting goods store is having a large sale event. baseball bats are marked down by 42%, and hockey sticks are marked down by
    7·2 answers
  • A __________ is a sample of consumers or stores from which researchers take a series of measurements. representative group jury
    8·1 answer
  • What is a general advantage of setting promotion budgets to whatever level companies believe they can afford? Does not acknowled
    10·1 answer
  • When Top-Flite introduced its Strata golf balls with a new design for better flight with hit by metal clubs, it charged three ti
    6·1 answer
  • Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter
    5·1 answer
  • ABC Company incurs a cost of 50 cents to produce a dozen eggs, while XYZ Company incurs a cost of 70 cents to produce a dozen eg
    9·1 answer
  • e lottery winner who is going to invest in utility bonds and a savings account using the following data: Assume that her total w
    10·1 answer
  • Which persuasive appeal do you think is the most effective in advertising? Explain.
    9·1 answer
  • Microbiotics currently sells all of its frozen dinners cash-on-delivery but believes it can increase sales by offering supermark
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!