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
lozanna [386]
3 years ago
9

The common share of Atlanta, corp., is selling for $42 a share and investors require a 15% return on the stock. If two thirds of

the return on this stock are derived from dividends yield and the other one third is derived from capital gain yield. What is the amount of the current dividend D0
Business
1 answer:
dalvyx [7]3 years ago
7 0

Answer:

$4.00

Explanation:

the required rate of return=dividend yield(2/3)+growth rate(1/3)

The dividend yield of the stock is defined as the expected dividend divided by the current share price

dividend yield=expected dividend(in 1 year)/share price

dividend yield=2/3*15%=10%

expected dividend=unknown

share price=$42

10%=expected dividend/$42

expected dividend=10%*$42=$4.20

expected dividend=D0*(1+g)

g=growth rate=1/3*15%=5%

$4.20=D0*(1+5%)

$4.20=D0*1.05

D0=$4.20/1.05

D0=$4.00

You might be interested in
En una escuela ssecundaria, Jorge pide prestados $10 pesos a su amigo, al finalizar la semana Jorge le pafa $14 pesos. ¿Que tasa
saul85 [17]

Answer:

40%

Explanation:

tasa de interest simple = (valor final - valor inicial) / valor inicial = ($14 - $10) / $10 = $4 / $10 = 0.4 = 40%

La diferencia entre el interest simple y el interes compuesto es que cuando calculamos interes compuesto, el interes ganado previamente gana mas interest por si solo independiente del capital original. En cambio, con el interest simple, el interest ganado previament no gana interes por cuenta propia.

3 0
3 years ago
If a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 10 percent
Misha Larkins [42]

Answer:

 c. $360 increase in excess reserves and a $40 increase in required reserves

Explanation:

Required reserves is the amount of reserves that is required by the Central bank that banks should keep.

Required reserve = reserve ratio × deposit

= 0.1 × $400 = $40

Excess reserve is the amount of reserves kept in excess of the required reserves.

Excess reserve = Deposit - Required reserve = $400 - $40 = $360

I hope my answer helps you

4 0
3 years ago
On March 10, 2019, Dearden, Inc., purchased 11,200 shares of Jaffa stock for $47 per share as a long-term passive investment. De
olasank [31]

Answer:

Dearden, Inc.

Journal Entries to record the transactions:

March 10, 2019:

Debit Investment in Jaffa $526,400

Credit Cash $526,400

To record the purchase of 11,200 shares at $47 per share.

December 31, 2019:

Debit Loss on Investment $22,400

Credit Investment in Jaffa $22,400

To record the loss on investment from $47 to $45 per share.

December 31, 2020:

Debit Investment in Jaffa $33,600

Credit Gain on Investment $33,600

To record the gain on investment from $45 to $48 per share.

December 31, 2021:

Debit Loss on Investment $44,800

Credit Investment in Jaffa $44,800

To record the loss on investment from $48 to $44 per share.

September 12, 2022:

Debit Loss on Investment $22,400

Credit Investment in Jaffa $22,400

To record the loss on investment from $44 to $42 per share.

Debit Cash Account $470,400

Credit Investment in Jaffa $470,400

To record the sale of the investment in Jaffa at $42 per share.

Explanation:

For Dearden, Inc. journal entries are recorded on the acquisition date to record the purchase of the investment in Jaffa.  Records are also made every December 31 to record the movements in the share price of the investment.  Finally, on the date of disposal, records are also made to record the sale of the investment.

4 0
3 years ago
Eric is an hr manager at communication connections. which task would he perform as a part of the human resource planning process
artcher [175]

Forecasting future human resource requirements for his company is a part of the human resource planning process.

Forecasting is the method of making predictions based totally on past and present statistics. Later those can be compared to what takes place. For example, an agency may estimate its sales within the next year, then examine it against the actual consequences. Prediction is similar, but the extra preferred time period.

Forecasting is a way that uses historic statistics as inputs to make informed estimates which can be predictive in determining the course of destiny traits. Businesses utilize forecasting to decide on a way to allocate their budgets or plan for expected expenses for an upcoming time frame.

There are 4 trendy steps in the Human Resource Planning process: identifying the modern supply of personnel, determining the future of the body of workers, balancing between labor supply and demand, and developing plans that help the employer's goals.

Learn more about Forecasting here brainly.com/question/23009258

#SPJ4

7 0
1 year ago
What fact or facts support a situation where trade is advantageous?
DedPeter [7]

What fact or facts support a situation where trade is advantageous?

B. II only

8 0
3 years ago
Other questions:
  • The manager of a clothing store in the mall has hired five new employees for the summer. All of them have just graduated from hi
    11·2 answers
  • If the mpc is 0.70 and investment increases by $3 billion, the equilibrium gdp will
    6·1 answer
  • Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 7.4% with semiannual payments of
    11·1 answer
  • In two to three sentences, list the tree steps for effective decisions using marginal analysis
    6·1 answer
  • Jean Piaget's use of the term "operational" is most aligned with the concept of ________.
    7·2 answers
  • After you are done taking notes from a speaker, you should _____.
    15·1 answer
  • Niat ny mau bikin dua akun tapi malah kesasar :(​
    14·1 answer
  • Suppose that the administration in charge of the government proposes increasing spending on infrastructure. Assume that everythi
    15·1 answer
  • Assume the bid rate of an Australian dollar is $0.60 while the ask rate is $0.61 at Bank Q. Assume the bid rate of an Australian
    5·1 answer
  • the present value of a future sum decreases as either the discount rate or the number of periods per year increases, other thing
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!