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
In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a
Tems11 [23]

Answer: d. provide disclosure in the footnotes to the financial statements.

Explanation:

A contingent liability is an obligation that a company might owe in future depending on the outcome of an event such as a law suit.

To record a contingent liability in the books, two conditions must be satisfied;

  1. Loss must be probable
  2. Amount must be estimable

If these two conditions are not satisfied then the contingent liability may simply be disclosed as a footnote in the financial statement. The amount here is not estimable so can be disclosed as a footnote.

6 0
3 years ago
What are two examples of management information systems?
Anettt [7]

Answer:

process control systems, human resource management systems, sales and marketing systems, inventory control systems, office automation systems, enterprise resource planning systems, accounting and finance systems and management reporting systems.

Explanation:

8 0
3 years ago
A home electrical system is joined to the electric company's system at the junction of the
Alenkinab [10]
This is a breeze it is wires
5 0
3 years ago
One method of managing stress is finding a way to reduce the hindrance stressors encountered on the job. In your group, describe
horrorfan [7]

Explanation:

Stress in the work environment can occur due to several factors, such as excessive pressure, long working hours, conflicts with colleagues and superiors, inadequate salary, insecurity, etc.

It is a factor considered the evil of the century, due to the high competitiveness in the market and faster and faster economic changes, which ends up increasing the company's expectation regarding the employee.

It is important for organizations to adopt a posture that focuses on the needs of employees, so that they are able to measure the level of job satisfaction and implement measures that reduce stress factors in the workplace.

It is also important that the worker seeks to manage his stress through small attitudes, such as establishing a list of tasks, managing his time, seeking to have a better relationship with co-workers, avoiding procrastination, etc.

5 0
3 years ago
There are 5 applicants for a job, all of whom have different qualifications. the employer is in a hurry, and does not interview
Alenkinab [10]
To choose the two best, we have a target of two candidates, A & B
The first one chosen is either A or B, with a propability of 2/5.
The second one is the only interested candidate out of 4, so 1/4.
So probability of choosing the best two is 2/5*1/4=1/10.

Alternatively, use the combination formula, 
P(AB in any order) = 5!/(2!3!)=120/(2*6)=1/10
or in general,
n choose r = nCr = n!/(r!(n-r)!)
5 0
3 years ago
Other questions:
  • Dividing a fixed number of units among product categories to reflect relative preference is using a method called
    5·1 answer
  • What are a firms four major financial needs?
    15·1 answer
  • What were the main factors in both the North and South for the abandonment of Reconstruction?
    11·1 answer
  • A company buys a machine for $79,000 that has an expected life of 4 years and no salvage value. The company uses straight-line d
    7·1 answer
  • Assume the process of obtaining a​ driver's license is considered too long because of too few people who can administer the fina
    12·1 answer
  • With respect to the consumer price index, the substitution bias arises because:
    12·1 answer
  • Which of the following lists only the factors that would cause a decrease in the supply of an item? A. A fall in input prices; a
    10·1 answer
  • During 2021, its first year of operations, a company provides services on account of $255,000. By the end of 2021, cash collecti
    7·1 answer
  • Mary is 38 years old and many of her friends have gotten into trouble using their credit cards to buy things they can't afford.
    8·1 answer
  • Can policy market interventions cause consumer or producer surplus.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!