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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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Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than ot
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Answer and Explanation:

a. The preparation of the sales budget is prepared below:-

                                            <u>Sonic Inc.</u>

                                          <u>Sales budget</u>

<u>Particulars          </u>Unit  Sales<u>           Unit Selling price     Total Sales </u>

                              <u>Volume</u>

Model Rumble:    

East Region          12,000                 $60                        $720,000

West Region         14,000                 $60                        $840,000

Total                                                                                 $1,560,000

Model Thunder:    

East region             3,500               $90                           $315,000

West region            4,000               $90                           $360,000

Total                                                                                   $675,000

Total revenue from sales                                                  $2,235,000

To reach the total revenue from sales we simply added the total of model rumble with a total of model thunder.

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                                          <u>Production budget</u>

<u>Particulars </u>                    Units Model            Units Model

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Expected units to be

sold                                       26,000                    7,500

                                     (12,000 + 14,000)      (3,500 + 4,000)

Add: Desired ending

inventory                                500                             250

Total units required               26,500                       7,750

Less: Beginning inventory      750                            300

Total units to be produced    25,750                     7,450

So, to reach at total units to be produced we simply deduct the beginning inventory from total units required.

7 0
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