1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OLga [1]
3 years ago
9

Cincy Machinery stock currently sells for $77 per share. The market requires a return of 14 percent while the company maintains

a constant 6 percent growth rate in dividends. What was the most recent annual dividend per share paid on this stock (that is, this year's dividend)
Business
1 answer:
Mars2501 [29]3 years ago
5 0

Answer:

$5.81

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 =do(1 + g) = next dividend to be paid

r = cost of equity

g = growth rate

(do x 1.06) / (0.14 - 0.06) = 77

(d0 x 1.06) / 0.08 = 77

Multiply both sides by 0.08

d0 x 1.06 = 6.16

divide both sides by 1.06

d0 = 5.81

You might be interested in
The four major expenditure categories of GDP are: Group of answer choices consumption, government purchases, taxes, and investme
Nimfa-mama [501]

Answer:

consumption, investment, government purchases, and net exports.

Explanation:

The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.

Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being.

Basically, the four major expenditure categories of GDP are consumption, investment, government purchases, and net exports.

4 0
2 years ago
How can you maintain a balance between high-risk and low-risk investments?
ch4aika [34]
"By diversifying your investments" is the way among the choices given in the question that you can <span>maintain a balance between high-risk and low-risk investments. The correct option among all the options that are given in the question is the first option or option "A". I hope the answer helps you.</span>
7 0
3 years ago
Read 2 more answers
This tax is locally assessed, varies according to the worth of land and goods on it, and generally funds things like public scho
andre [41]

Answer:

Property

Explanation:

I Did it

7 0
2 years ago
What should you do if your manager has to leave the office to attend to personal business? A. Let the call go directly to voicem
IRINA_888 [86]
Best answer is that I can think of is probably C
4 0
3 years ago
Read 2 more answers
Which of te following correctly pairs a financing option with its description
Evgesh-ka [11]

If this question has the same set of choices like the other ones posted here, then the answer would be letter C. 529 plan- money you save.
7 0
3 years ago
Other questions:
  • Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has
    10·1 answer
  • Organizations compensate their employees in a variety of ways in order to motivate them. Compensation may be offered at the indi
    10·1 answer
  • When a firm perceives that a foreign currency is _______, the firm may attempt direct foreign investment in that country, as the
    9·1 answer
  • Look Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using
    9·1 answer
  • Brushy Mountain Mining Company’s coal reserves are being depleted, so its sales are falling. Also, environmental costs increase
    8·1 answer
  • "in a period of rising prices, the inventory method which tends to give the highest reported costs of goods sold is"
    15·1 answer
  • Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan to expand
    9·1 answer
  • Which of the following best describes the role of “capital?”
    10·1 answer
  • To _____ is to modify or improve upon code.
    6·2 answers
  • The probability that a 80-year-old female in the U.S. will die within one year is about 0.048711. An insurance company is prepar
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!