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horrorfan [7]
3 years ago
5

The next dividend payment by Wyatt, Inc., will be $2.30 per share. The dividends are anticipated to maintain a growth rate of 4.

5 percent forever. If the stock currently sells for $39.85 per share, what is the required return? What is the dividend yield? What is the expected capital gains yield?
Business
1 answer:
balandron [24]3 years ago
7 0

Answer:

Required return 10.27%

Dividend yield 5.77%

Expected capital gains yield 4.5%

Explanation:

Calculation for required return using this formula

A. R = (D1 / P0) + g

Let plug in the formula

Required return = ($2.30 / $39.85) + .045

Required return = .1027*100

Required return= 10.27%

Therefore Required return is 10.27%

Calculation for dividend yield using this formula

Dividend yield = D1 / P0

Let plug in the formula

Dividend yield = $2.30 / $39.85

Dividend yield = .0577*100

Dividend yield = 5.77%

Therefore Dividend yield is 5.77%

Calculation for the expected capital gains yield

Using this formula

Expected capital gains yield=Required return-Dividend yield

Let plug in the formula

Expected capital gains yield=10.27%-5.77%

Expected capital gains yield=4.5%

Therefore Expected capital gains yield is 4.5%

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tatuchka [14]

Answer:

8.54%

Explanation:

Current Index value:

= [current total market value of index stocks] ÷ [Base year total market value of index stocks] × Base year index value

= [(69 × 35000) + (122 × 32500)] ÷ [(63 × 35000) + (113 × 32500)] × 100

= 108.54

Return in percent:

= ( 108.54 - 100 ) ÷ 100

= 8.54%

Therefore, the value-weighted return for the index is 8.54%.

8 0
3 years ago
he next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4.
Elan Coil [88]

Answer:

The Required Return is 10.82%.

Explanation:

The Dividends Model for the Constant Growth is given below:

                                          P0 = D1 / (Ke - g)

Arranging the above equation for "Ke", that is the Required Return:

                                      ⇒ Ke = (D1 / P0) + g

Putting Values and we get:

Required Return = Ke = (2.34 / 37) + .045 = .1082 = 10.82%.

Thanks!

8 0
3 years ago
Anya is a graphic designer in a firm specializing in making logos for their clients. Last week, she got client specifications on
puteri [66]

Answer:

Task identification/identity, feedback

Explanation:

Task identification, simply put, is the ability of an employee to understand his or job and its requirements.

Feedback on the other hand can also be simply said to be the response that is derived from a product use by consumers. Feedback helps to tell whether a product or firm is doing the right thing or there is room for improvement in its products or firm practices.

In the case of Anya, her job involves a great deal of task/job identification/identity as she has to be capable of envisioning the specifications of clients as well as requesting for feedback to ensure that she is doing exactly what the client wants.

Cheers.

3 0
3 years ago
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joja [24]

Answer:

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Based on the scenario being described within the question it can be said that this is an example of Economic conditions influencing jobs in the future. These conditions are the different aspects that affect the overall economy of a country which include GDP growth potential, the unemployment rate, inflation, as well as policy orientations.

5 0
3 years ago
Sapp Trucking’s balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to
Vedmedyk [2.9K]

Answer:

Please see attachment

Explanation:

Please see attachment

4 0
3 years ago
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