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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

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Answer:

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Explanation:

1-Balance sheet items are restated on the closing date.

2-P & L items are restated on the transaction date.

As the items Land, Equipment and Inventory are all the balance sheet items, thus they will be stated on the closing date i.e. December 31, 2020.

Furthermore, the functional currency is foreign currency. Since the equipment is purchased in the domestic currency it has to be translated into the foreign currency at the rate as on the date of purchase i.e; February 1, 2020.

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Answer:

(a) $15

(b) $35

(c) 4

(d) $80

Explanation:

Given that,

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= $20 + $15

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Products that consumers a regularly without spending much effort on thinking about them are?
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Answer: Convenience, Shopping, Speciality and Unsought

Explanation: Next time please be more specific Thanks

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Max Staxx borrowed $2,000 on a 10%, 120 day note. After 45 days, Max paid $700 on the note. Thirty days later, Max paid an addit
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$670 is the final balance due that max wants to pay.                                                                                  

<u>Explanation</u>:

  • Max borrowed a $2000 amount on a 120-day note. First, he paid $700 in the 120-day note. So the current amount he paid is $700.
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