Without specifics, a goal isn't very_____. motivating accurate needed useful

Alaskan foodstuffs just announced the annual dividend for this coming year will be $0.36 a share and all future dividends are ex

Aleksandr-060686 [28]

Answer: The market rate of return is 7.45%

We follow these steps to find the answer.

Here we can interpret the term 'market rate of return' as the required rate of return on the stock. We represent this as $k_{e}$

The current market price of stock (P₀), whose dividends are expected to grow for a constant rate is given by:

$P_{0} = \frac{D_{1}}{k_{e}-g}$

where

D = Upcoming dividend

k_{e} = required rate of return on the stock

g = constant growth rate of dividends.

Plugging in the values from the question in the formula above we get,

$12.20 = \frac{0.36}{k_{e} - 0.045 }$

$k_{e} - 0.045 = \frac{0.36}{12.20}$

$k_{e} = 0.029508197 + 0.045$

$k_{e}= 0.074508197$

7 0

3 years ago

Bank a has total deposits of $125 million and total reserves of $26 million. the required reserve ratio is 15 percent. the bank

olga2289 [7]

The bank has an excess of $7,250,000. The total deposits maintained by the bank are $125 million. The reserves maintained by the bank are $26 million. The required reserve ratio is 15%.

Total deposits are 125,000,000.

The Required reserve ratio is 15%.

So in actuality, the bank had to maintain a reserve of $18,750,000.

It is maintained a total reserve of $ 26,000,000.

Excess reserve of $7,250,000.

The banks are required to maintain a particular percentage as reserve of the amount deposited with them. Deposit is that amount that the customers maintain with them. The banks make a profit by lending this deposit to other lenders. The bank has to keep an amount as reserve to see that they are able to pay back the customer their deposit amount if required by the customer.

Learn more about reserve and deposits of bank here:

brainly.com/question/15296672

#SPJ4

8 0

2 years ago

Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the com

spin [16.1K]

Answer: 7.48%

Explanation:

Weighted Average Cost of capital is simply the weighted average of the costs of equity and debt.

Cost of Equity

= $\frac{Next dividend}{Stock Price ( 1 - flotation Costs)} + growth rate$

= $\frac{0.65}{19(1 -0.1)} + 0.06$

= 9.80%

Cost of debt

= Interest ( 1 - Tax)

= 0.075 (1 - 0.40)

= 4.65%

WACC = 9.80% * 0.55 + 4.65% * 0.45

= 7.48%

6 0

3 years ago

Jerry is using social media to market products directly to end users. This type of marketing is defined as real-time feedback cr

nikklg [1K]

Answer:

The correct answer is letter "C": businesses-to-consumer.

Explanation:

Businesses-to-consumer (B2C) sales are those in which the manufacturer or firm directly offers its product or services to the final users. The advantage of this practice is charging higher since companies do not have to consider a special price for suppliers to earn profits. The drawback lays in the fact that en users usually purchase items in small sizes.

6 0

3 years ago

If a competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $24 per bushel and the margin

Liula [17]

Answer: reduce output.

Explanation:

In a competitive market, firms do not have control over the price that they sell their goods in the market but they do have control over their costs. It is recommended to produce/ sell goods at a quantity where Marginal Revenue will equal Marginal cost (MR = MC).

In a Competitive Market, Price is the same as Marginal revenue which means that Marginal revenue here is $25 and the Marginal Cost is $26. At this quantity of output, the Marginal Cost is larger than the Marginal revenue.

Company should therefore reduce output to a quantity where Marginal Cost will equal Marginal revenue.

6 0

3 years ago