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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

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Pottery Crane Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of ca
harkovskaia [24]

Answer: See explanation

Explanation:

a. Direct material = 4 × 33300 = Make $133200 ; Net income increase

Direct labor = 5 × 33300 = Make $166500 ; Net income increase

Variable costing= 0.61 × $166500 = Make $101565 ; Net income increase

Fixed manufacturing = Make 43100 ; Buy 43100 ;

Purchase price = 13.16 × 33300 = Buy $438228 ; Net income decrease

Total annual cost:

Make: $444365

Buy: $481328

Net income decrease = $36963

b. No, Pottery Ranch should not buy the finials. There's an incremental cost of $36963.

c. Incremental revenue = $50,367

Incremental cost = $36963

Incremental revenue = $50367 - $36963 = $13404

In this case, it should be bought.

5 0
3 years ago
If a Cournot duopolist announced that it will double its output A. the other firm will double output also. B. the other firm doe
jekas [21]

Answer:

B) the other firm does not view the announcement as credible

Explanation:

The reason is that the other firm thinks that the announcing firm will make losses as it will not be able to sell the products in an imperfect market where both the firms have identical cost functions and knew all about the cost. So increasing the production when the demand is the same will decrease the price of the product and result in increased losses to the announcing company.

7 0
3 years ago
Athena Jolene, a human resources executive at Thomas Griffith, wants to collect ideas from the company's employees for an upcomi
gregori [183]

Answer:

B) discussion forum

Explanation:

A discussion forum is an online tool where people can post messages and everyone with access to the forum can read what is been shared, give answers and post new content. Because of this, the forum will be the technique that will best help Athena receive suggestions from employees, while also allowing employees to share their ideas with one another. Instant messaging, texting and emailing won't allow the interaction between several people discussing ideas that the forum can provide.

6 0
3 years ago
Define indicators of development what are the major indicators of development explained?​
VARVARA [1.3K]

Answer:

The extent to which a country has developed may be assessed by considering a range of narrow and broad indicators, including per capita income, life expectancy, education, and the extent of poverty.

Explanation:

thats

indicators of development

3 0
3 years ago
Summarize red lines and reverse red lining and why they are unethical lending practices
Sonbull [250]

Answer:

3 For example, redlining has been used to describe discriminatory practices by retailers, both brick-and-mortar and online. Reverse redlining is the practice of targeting neighborhoods (mostly non-white) for higher prices or lending on unfair terms such as predatory lending of subprime mortgages. A 2017 study by Federal Reserve Bank of Chicago economists found that redlining—the practice whereby banks discriminated against the inhabitants of certain neighborhoods—had a persistent adverse impact on the neighborhoods, with redlining affecting homeownership rates, home values and credit scores in 2010.

3 0
2 years ago
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