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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

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Revising for Conciseness - Eliminating Flabby Expressions,Limiting Long Lead-Ins, and Dropping Unnecessary Fillers
Mama L [17]

Answer: 2. 2. We have identified a problem with our expense sheet, but we will solve it.

3. 2. The user should contact the help center.

4. 1. In the future, we should be more careful about scheduling.

Explanation:

2. By choosing Option 2, the writing is more concise and but still has all the necessary details unlike the other options that are unnecessarily long.

3. Option 2 does not make assumptions like option 1 did which is wrong. Option 3 would be better but the text did not include the bit about the problem this making Option 2 best.

4. Option 1 is the best option because it is clear and concise and eliminates the long lead-in.

5 0
3 years ago
If jorge produces 20 pounds of green beans, he can produce _______ pounds of corn
aniked [119]

If jorge produces 20 pounds of green beans, he can produce  <u>240 </u>pounds of corn.

<h3 /><h3> Production Possibilities Schedule</h3>

Based on the  Production Possibilities Schedule table given pound of green beans is 20 while pounds of corn is 240.

Based on this if he produces 20 pounds of green beans he can as well produce 240 pounds of corn.

Jorge's Production Possibilities Schedule

Pounds of Green       Beans Pounds of Corn

20                                 240

Therefore If jorge produces 20 pounds of green beans, he can produce  <u>240 </u>pounds of corn.

Learn more about  Production Possibilities Schedule here:brainly.com/question/26492942

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6 0
1 year ago
Misty Mountain Shop is considering purchasing a new piece of equipment that would be used for 6 years. The cost savings from the
Allisa [31]

Answer:

NPV = $ 87,592.90

Explanation:

Net present value is calculated by taking the Present Day (discounted) value of all future Net Cash Flow based on the Business Cost of Capital and subtracting the Initial cost of the Investment.

<u>Calculation of Net present value (Financial Calculator)</u>

Period and Cash flow

CF0   = ($900,000)

CF1    =  $200,000

CF2    =  $200,000

CF3    =  $200,000

CF4    =  $200,000

CF5    =  $200,000

CF6    =  $300,000

Cost of Capital = 8%

NPV = $ 87,592.90

8 0
3 years ago
How can you fix the current finance decisions so that we are in a healthy cash position at the end of the year?
Anit [1.1K]

If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.

Given that we want us to be in a healthy cash position at the end of the year.

We are require to find the way how can we will be in a healthy cash position at the end of the year.

A cash position basically represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time.

If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be enough investments in our balance sheet and less debt.

Hence if we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.

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7 0
1 year ago
Read 2 more answers
Assume that Maia spends all of her income on halvah (H) and pomegranates (P) and is purchasing the optimal consumption bundle. I
mamaluj [8]

Answer:

The correct answer is:

$4 (D.)

Explanation:

From the question, we are told that:

the price of halvah (MUH)= $12

the price of pomegranates (MUP)= ????

Next, we are also told that the optimal consumption ratio of MUH to MUP = 3

This means that the Mauginal Utility of halvah (H) to the marginal utility of pomegranates (P) = 3

MUH/MUP = 3

12/MUP = 3

MUP = \frac{12}{3} = 4

MUP = $4

5 0
3 years ago
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