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
victus00 [196]
3 years ago
15

Suppose you know a company's stock currently sells for $64 per share and the required return on the stock is 0.12. You also know

that the required return is evenly divided between the capital gains yield (G) and the dividend yield (D1/P0) (this means that if the required retun is 9%, the capital gains yield is 4.5% and the dividend yield is 4.5%).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:
jasenka [17]3 years ago
6 0

Answer:

$3.62

Explanation:

Dividend Yield = 0.12/2

Dividend Yield = 0.06

==> (Dividend in One Year)/Current Price= .045

D1 = 0.06*$64

D1 = $3.84

D0 (Current Dividend) = D1/(1+Dividend Yield)

D0 (Current Dividend) = $3.84/(1.06)

D0 (Current Dividend) = 3.622641509433962

D0 (Current Dividend) = $3.62

You might be interested in
Jay Bird is a partner in Soundview Partnership. The adjusted basis of his interest is $19,000, of which $15,000 represents his s
Marta_Voda [28]

Answer:

Ordinary income of $6,000; Capital gain of $18,000

Explanation:

Calculation to determine the amount and character of his gain

First step is to calculate the The total gain on the sale of his partnership

Using this formula

Total gain on the sale of his partnership = ( Cash + Relief of his share of liabilities -Basis )

Let plug in the formula

Total gain on the sale of his partnership=$28,000+$15,000+$19,000

Total gain on the sale of his partnership=$24,000

Now let determine the amount and character of his gain

The UNREALIZED RECEIVABLES amount of $6,000 will be the ORDINARY INCOME while the remaining amount of $18,000 Calculated as ($24,000-$6,000) will be the CAPITAL GAIN.

Therefore the amount and character of his gain will be: Ordinary income of $6,000; Capital gain of $18,000

4 0
2 years ago
Describe in your own word the three types of leadership.
Nat2105 [25]

Answer:

it's a u're welcome

Explanation:

u're welcome ♥️hope you enjoyed

6 0
2 years ago
Read 2 more answers
Spartan Systems reported total sales of $374,400, at a price of $24 and per unit variable expenses of $13, for the sales of thei
V125BC [204]

Answer:

$214,500

Explanation:

For the computation of the amount of contribution margin first we need to follow some steps which are shown below:

No of units sold = Total sales ÷ selling price per unit

= $374,400 ÷ $24

= $156,00

Variable cost = No of units sold × Variable cost per unit

Variable cost = $15,600 × $13

=$202,800

Contribution margin = Sales - Variable cost

= $374,400 - $202,800

= $171,600

CM ratio = Contribution margin ÷ Sales

= $171,600 ÷ $374,400

= 0.46

Contribution margin = CM ratio × Sales Contribution margin

= 0.46 × (1.25 × $374,400)

= $214,500

3 0
3 years ago
What does the owner of a miniature golf business provide her customers with?
N76 [4]

Answer:

golf clubs

Explanation:

4 0
3 years ago
Sadie sold 10 shares of stock to her brother, George, for $500 16 months ago. Sadie had purchased the stock for $600 two years e
wlad13 [49]

Answer:

there is gain and  receive is $100 long term gain

Explanation:

given data

Sadie sold = 10 shares

Sadie sold shares of stock = $500

time = 16 year ago

Sadie purchased the stock = $600

time = 2 year earlier

George sells  stock = $700

to find out

amount and character of his recognized gain or loss in the current year

solution

we know that George receives dual basis in the stock

his loss  = $600 - $500 = $100

and

if we consider stock is sold at a gain

then  George receives a carryover basis = $600

and

if we consider stock is sold at a loss

then  George receives  = $500

also here his sister basis and holding period is transfer to her brother

so we can say there is gain

and receive is = proceed - carryover basis

receive is = $700 - $600

receive is $100 long term gain

5 0
2 years ago
Other questions:
  • What type of a goal is graduating from college in four years? (I forgot the attachment from last question)
    12·2 answers
  • At what point does buying in bulk stop being a wise spending choice
    9·2 answers
  • With respect to product quality, deming believed that a company should never ________. pay more attention to quality than to pri
    6·1 answer
  • Griffin's Goat Farm, Inc., has sales of $796,000, costs of $327,000, depreciation expense of $42,000, interest expense of $34,00
    13·2 answers
  • Felix Mining acquired a copper mine at a total cost of $3,000,000. The mine is expected to produce 6,000,000 tons of copper over
    9·1 answer
  • Wen, a consumer researcher, is conducting a research on the buying behavior of the hispanics. as part of her study, she calculat
    5·1 answer
  • Expliquen la siguiente frase:
    8·1 answer
  • The presence of a sales tax means that people pay a tax on most everyday things they buy, such as clothes and groceries. In the
    11·1 answer
  • True or false: unlike the economic system of a country, the legal system is not influenced by the prevailing political system.
    8·1 answer
  • Which of the following is most likely to improve e-commerce in the world trade arena?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!