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chubhunter [2.5K]
2 years ago
15

Roy's Welding common stock sells for $64.20 a share and pays an annual dividend that increases by 4.30 percent annually. The mar

ket rate of return on this stock is 14.6 percent. What is the amount of this year's dividend paid last week
Business
1 answer:
AnnyKZ [126]2 years ago
5 0

Answer:

$6.91

Explanation:

Roys welding common stock sells for $64.20

The annual dividend increase by 4.30%

The market rate of return is 14.6%

Therefore the amount of dividend paid last week can be calculated as follows

64.20 = last week stock × (1-0.043)÷(0.146-0.043)

64.20 = last week stock × 0.957÷ 0.103

64.20 × 0.103 = last week stock × 0.957

= 6.6126 = last week stock × 0.957

Last week stock = 6.6126/0.957

= $6.91

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Answer:

Equals the foreign exchange rate minus the inflation rate.

Explanation:

Nominal rate of interest refers to the interest rate which does not account for rate of inflation.

It is expressed as

Nominal interest rate = Real interest rate + rate of inflation

Real interest rate is considered to be a better measure since it is adjusted for rate of inflation.

Foreign exchange rate refers to exchange rate between two currencies which is based upon inflation and interest rates prevailing in the respective countries.

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3 years ago
The buyer of a futures contract A. assumes the short position. B. may not sell the contract without the permission of the origin
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Answer:

D

Explanation:

Firstly, before we answer this question, we need to know what a futures contract is.

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This means to set a future contract rolling, we need to have an agreed date if delivery and currently agreed price by both parties involved.

Now, to the question, the correct answer is D. He has the obligation to deliver the underlying financial instrument at the specified future date

6 0
3 years ago
The balance sheet of Innovative Products reports total assets of $570,000 and $770,000 at the beginning and end of the year, res
Makovka662 [10]

Answer:

$201,000

Explanation:

The computation of net cash flows from operating activities is shown below:-

Beginning Total Assets            $570,000

Ending total assets                   $770,000

Average Total Assets in use    $670,000

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Cash Flow from operating activities  

Average Assets × 25%               $201,000

($670,000 × 25%)

Therefore the Cash Flow from operating activities is $201,000

6 0
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Answer: yes

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3 years ago
The purpose of stock valuation isGroup of answer choicesof limited value, since the efficient market hypothesis proves that all
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To determine whether the value of the common stock is fairly represented by its market price.
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