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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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A one-brand-name strategy should be adopted when the name cannot be pronounced in the local language, when the brand name is own
marishachu [46]

Answer:

False

Explanation:

A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and store value as brand equity for the object identified, to the benefit of the brand's customers, its owners and shareholders. Name brands are sometimes distinguished from generic or store brands.

4 0
3 years ago
Simply stated, the manner in which you and other employees treat your customers and each other as you deliver your company's pro
shepuryov [24]

Answer:

Customer service

Explanation:

Customer service is simply the act of meeting a customer's needs. This involves providing professional, informative, pre-service and post-service opportunities among other things to ensure that the customer is satisfied and also ensuring the employees are delivering company products and other things to the public.

Cheers.  

4 0
3 years ago
Crisp Cookware's common stock is expected to pay a dividend of $3 per share at the end of this year; its beta is 0.9; the risk-f
slavikrds [6]

Answer:

The answer is $41.21

Explanation:

Required Rate of Return = Risk Free Rate + Beta*(Market Risk Premium)= 5.2% + 0.9 * 6% = 10.6%

Cost of Equity = D1/Current Stock Price + Growth Rate

10.6% = $3/$40 +g

g = 3.1%

Stock Price After 3 Years = Current Stock Price*Growth Rate= $40 * (1.031)= $41.21

7 0
3 years ago
The publisher from needs to change his calculations. Before the book is actually produced, rising paper costs increase variable
Lerok [7]

Answer:

As the variable cost increased by $2.10 per book so if publisher wants to start making profit at same level of production then it should increase the selling price of the book by $2.10. As the increase in cost and selling price will be same so the publisher will also start making profit at same production level.

6 0
3 years ago
At December 31, 2013, before any year-end adjustments, Macarty Company's Prepaid Insurance account had a balance of $2,700. It w
gtnhenbr [62]

The adjusting entry would recognise insurance expense of $1,500.

Explanation:

The policy of an insurance company, tax insurance, insurance for business failure, etc. typically lasts a year, with payments charged in full (insurance premiums). Insurance policy is never the same as the financial year of the product. There are also expected to be several consolidated financial statements and some partial financial statements for compensation premiums.

Example of insurance premium payment:

On 31 December, the insurer files an correction report in order to document the expired (extended) cost of insurance and to the the pre-paid number. This is done with an premium fee of $1,000 and a prepayment policy bonus of $1,000.

4 0
3 years ago
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