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
marissa [1.9K]
3 years ago
5

Eastern Electric currently pays a dividend of about $1.96 per share and sells for $37 a share. A. If investors believe the growt

h rate of dividends is 4% per year, what rate of return do they expect to earn on the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
maksim [4K]3 years ago
5 0

Answer:

Rate of return = 9.53 % (Approx)

Explanation:

Given:

Dividend per share = $1.97

Sales price = $37

Growth rate of dividends = 4% = 0.04

Find:

Rate of return

Computation:

Rate of return = D(1+g)/p + g

Rate of return = 1.97(1+0.04)/37 + 0.04

Rate of return = 9.53 % (Approx)

You might be interested in
In this Lorenz Curve, the formula for the GINI coefficient is: (Yellow Area) / (Yellow Area + Green Area). If the Yellow Area is
Flauer [41]

Answer: 0.2

Explanation:

The Gini coefficient also referred to as the Gini index is a statistical measure of distribution that depicts economic inequality through the measure of income distribution or wealth distribution among the population. Gini coefficient ranges from 0 to 1, with 0 meaning perfect equality and 1 meaning perfect inequality. Gini coefficient values over 1 are also possible as a result of negative income or wealth.

Since the formula for the GINI coefficient in the Lorenz curve has been given as: (Yellow Area) / (Yellow Area + Green Area) and yellow area is 0.1 and green area is 0.4.

Gini coefficient= 0.1 /(0.1+0.4)

= 0.1/0.5

= 0.2

6 0
3 years ago
Jennifer’s Dress Boutique custom makes wedding gowns, and requires customers to pay in advance for the work performed. When a cu
Aleks04 [339]

Answer:

A: Increase Cash $6,000 and increase Unearned Service Revenue $6,000

Explanation:

As the customer is performing the payment in advance, it will generate an obligation to the business to do the wedding gowns. This will not be a revenue; it will be liability for the business until the job is done. While the job is incomplete and undelivered, it will represent unearned service revenue.

7 0
3 years ago
Ned has built his entrepreneurial venture into a successful business. Part of his original plan was to build the business then s
Ivan

Answer:

c.relinquish

Explanation:

-Reap means to receive a compensation.

-Harvest means to collect or gather something.

-Relinquish means to voluntarily give control of something to someone else.

-Co-opt means to accept someone in a group by decision of the other members.

According to this, Ned intends to relinquish his business because his plan was to give the control of the company to someone else by selling it so it could be taken to the next level.

7 0
3 years ago
Exporting is the sale of goods and services to foreign markets.<br><br> true or false?
Amiraneli [1.4K]

Answer:

true

Explanation:

while import is receiving goods from foreign country

4 0
3 years ago
Doug Graves Cemetery had 53,000 shares of common stock issued and outstanding at January 1, 2021. During 2021, Graves took the f
True [87]

Answer:

The answer is given below;

Explanation:

Revised Stocks =53,000*2=106,000

Dividend per share=106,000*.4=$42,400

The $42,400 will be reported as dividend  as the number of shares outstanding have doubled due to stock split.

7 0
4 years ago
Read 2 more answers
Other questions:
  • Which type of flash memory card is currently the smallest type of card?
    5·1 answer
  • When a ceo opened the nationwide sales force meeting with a crude sexually explicit joke it was an example of ____?
    9·1 answer
  • Barkatorium Pet Supplies established a line of credit with its local bank and used (borrowed) $95,000 against it to purchase its
    5·1 answer
  • You and your friends have decided to build a skateboard ramp behind your house. You have already purchased $500 in materials and
    7·1 answer
  • Jill invests $1,000.00 to buy ten shares of Good Corporation. The corporation goes bankrupt having no assets and $1 million in l
    10·1 answer
  • Describe at least three risks a company might face if it participates in global trade.
    9·2 answers
  • Phil used his rental property for personal use for 7 days and rented it for 63 days. In most cases, what percentage of his expen
    8·1 answer
  • Who wants to see what i look like?
    13·1 answer
  • _____ is the breaking down of large shipments of similar merchandise into smaller, more usable quantities that can be sold to co
    14·1 answer
  • The goal of recruitment is to obtain a pool of applicants large enough to contain a number of talented prospects. group of answe
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!