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Inessa [10]
3 years ago
11

Kate owns a stock with a market price of $31 per share. This stock pays a constant annual dividend of $0.60 per share. If the pr

ice of the stock suddenly increases to $36 a share, you would expect the:
Business
1 answer:
enyata [817]3 years ago
7 0

Answer:

Dividend yield is decreased by 0.27%

Explanation:

In this question, we have to find out the dividend yield which is shown below:

In the first case:

Market price = $31 per share

Annual dividend = $0.60 per share

So, the dividend yield = ($0.60 per share ÷ $31 per share) × 100

                                     = 1.94%

In second case:

Market price = $36 per share

Annual dividend = $0.60 per share

So, the dividend yield = ($0.60 per share ÷ $36 per share) × 100

                                     = 1.67%

By comparing these two cases, we get to know that the dividend yield is decreased by 0.27% (1.94% - 1.67%)

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Ralph is a professional football player. He signs a valid contract with the Jets. Later, the Giants offer him more money, so he
svetoff [14.1K]

Answer:

C. The court will issue a preliminary injunction barring Ralph from playing with any team other than the Jets during the course of the lawsuit.

Explanation:

Signing a contract means that both the offering and the accepting parties are agreeing over the particular protocols. Offer, acceptance, and consideration are the important aspects of the contract. The acceptance of both parties over the same norms is the most essential part of the contract.

In the above situation, Ralph has violated the agreed contract with the Jets. He went forward and signed another contract with Giants. This action of Ralph was a strict violation of the contract agreed on by Ralph and Jets.  According to the judicial proceedings, Ralph was ordered to obey the contract and was barred from playing with any other team.

7 0
3 years ago
A firm has a cost of debt of 7.5 percent and a cost of equity of 16.2 percent. the debt-equity ratio is 0.45. there are no taxes
valentina_108 [34]
About 16.2 percent of the cost of what ?
6 0
3 years ago
Rebotar Inc, makes basketballs. Their fixed costs are $3450 Variable costs are $12 per basketball, If the basketball is priced a
worty [1.4K]

Answer:

Break-even points = 265.38

Explanation:

Given:

Fixed cost = $3,450

Variable costs = $12

Selling price = $25

Number of balls sold = 300

Find:

Break even costs

Computation:

Contribution per unit = Sales - Variable costs

Contribution per unit = $25- $12

Contribution per unit = $13

Break-even points = Fixed cost / Contribution per unit

Break-even points = $3,450 /$13

Break-even points = 265.38

6 0
3 years ago
Driver Products recently paid its annual dividend of $2, and reported an ROE of 15%. The firm pays out 50% of its earnings as di
iragen [17]

Answer:

$29.70

Explanation:

Retention ratio = 1 - payout ratio

= ( 1  -0.5 )

= 0.5

Growth rate, g = ROE × Retention ratio

= 0.15 × 0.5

= 0.075

= 7.5%  

Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]

= 2.5% + 1.44 × (11% - 2.5%)

= 14.74%

Intrinsic value = \frac{\textup{D1}}{\textup{(Required return-Growth rate)
}}

=\frac{\textup{2}\times(1+0.075)}{\textup{(0.1474-0.075)
}}

= 29.69 ≈ $29.70

5 0
3 years ago
The unadjusted trial balance of Sketch Star Makers Inc., prepared as of December 31, 2018, includes the following account balanc
tino4ka555 [31]

Answer:

Explanation:

The adjusting entries are shown below:

1. Supplies expense A/c Dr $1,500

         To supplies A/c $1,500

(Being supplies account is adjusted)

The supplies expense is computed by

= Supplies balance - supplies on hand

= $2,800 - $1,300

= $1,500

2. Insurance expense A/c Dr $1,320                 ($6,600 ÷ 5 years)

                To Prepaid Insurance $1,320

(Being prepaid insurance is adjusted)

3. Depreciation Expense A/c Dr $1,900

            To Accumulated Depreciation - Equipment A/c $1,900

(Being depreciation expense is recorded for 2018)

4.  Deferred revenue A/c $4,750        ($9,500 × 50%)

          To Service revenue $4,750

(Being Deferred revenue is recorded)

5. Salaries and wages expense A/c Dr $2,900

          To Salaries and wages payable A/c $2,900

(Being accrued salaries and wages are recorded)

5 0
3 years ago
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