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%
Answer:
The correct answer would be options A and B.
Explanation:
When a company is in financial trouble or faced a bankruptcy, then a process of reorganization is used in an attempt to extend the life of the company through some special arrangement to make the organization successful and progressive.
In this question, Jim wants to know how employees of the company think of the new structure after the reorganization. So the best method to talk to employees directly is to give them a surprise visit and talk to them about the reorganization. Also town hall meetings should be arranged to meet the employees one on one in an informal gathering and talk to them about the reorganization.
Answer:
A) price will increase and quantity increase.
Explanation:
An increase in demand means more customers are willing and can afford to buy a product. Holding the other factors constant, an increase in demand results in many potential buyers chasing very few goods. The competition for the few goods leads to an increase in their prices. The equilibrium point moves up the graph to a new higher position as a result of an increase in demand.
As per the law of supply, quantity supplied increases as prices rise. Profit motives drive all business establishments. As prices increase due to increased demand, suppliers will be motivated to supply more to take advantage of high prices.
