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aivan3 [116]
2 years ago
6

The common stock of RMW Inc. is selling at $88 a share. It just paid a dividend of $4. Investors expect a return of 15 percent o

n their investment in RMW Inc. From this information, what is the expected growth rate of future dividends?
Select one:
a. 9%
b. 10%
c. 11.5%
d. 12%
Business
1 answer:
Nina [5.8K]2 years ago
6 0

Answer:

12%

Explanation:

R=D1/P0+g

15  =4/88+g

 15 =0.0454+g

15/15=0.0454/15 +g

g=0.3026

.15-0.03=.12

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Sweet Treats common stock is currently priced at $17.15 a share. The company just paid $1.22 per share as its annual dividend. T
ddd [48]

Answer:

cost of equity =  9.68%

so correct option is d. 9.68%

Explanation:

given data

currently priced = $17.15

paid annual dividend = $1.22

dividends increasing = 2.4% annually

to find out

firm's cost of equity

solution

we get here cost of equity by apply price equation that is express as

Price = recent dividend × ( 1 + growth rate ) ÷ ( cost of equity - growth rate)   .....................1

put here value we get

$17.15 = \frac{1.22*(1+0.024)}{cost\ of\ equity - 0.024}

solve it we get

cost of equity =  9.68%

so correct option is d. 9.68%

5 0
3 years ago
The demand for labor curve shows:a. an inverse relationship between the real wage and the amount of laborhired.b. a positive rel
ankoles [38]

Answer:

The correct answer here is d.

Explanation:

Real wage is the nominal wages adjusted for price changes. It reflects the purchasing power earned by the workers.

There will be a direct and positive relationship between real wages and number of workers who are willing to work. This means when there is an increase in the real wages, more workers will be willing to work because they will be earning more. Reverse will be the situation in case of reduced real wages.

4 0
3 years ago
Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are
ella [17]

Answer:

($1,575)

Explanation:

The computation of net cash flow from financing activities is shown below:-

Lexington Company

Net cash flow from financing activities

Particulars                                                   Amount

Cash received from common stock           $650

Less:Cash paid for repayment of loan        ($1,405)

Less: Cash paid for dividend                       ($820)

Net cashflow from financing activities     ($1,575)

So, to reach the net cashflow from financing activities we simply added the cash received from common stock and deduct the cash paid for repayment of loan and cash paid for dividend.

3 0
3 years ago
Which part of developing nations economies did the green revolution impact.
tatyana61 [14]

The green revolution helped increase food production, as well as benefiting wealthy farmers in developing countries.

<h3 /><h3>What was the green revolution?</h3>

It was a process that instituted new technologies in agriculture, modernizing the means of production on a global scale. Some of the contributions were the development of agricultural machinery and genetically modified seeds.

Therefore, some countries such as Mexico and India have benefited from the green revolution, helping in the development of agriculture and economy.

Find out more about green revolution here:

brainly.com/question/1082058

#SPJ1

8 0
1 year ago
Read 2 more answers
A company gives each of its 80 employees (assume they were all employed continuously through 2020 and 2021) 12 days of vacation
Olin [163]

Answer:

$157,440 ; $230,400

Explanation:

The computation is shown below:

For 2018

= Number of employees × number of vacations in a year × number of hours per day × wages per hour

= 80 employees × 12 days × 8 hours × $20.50

=$157,440

For 2021

= Number of employees × number of vacations in a year + number of vacations in a year - average of vacations × number of hours per day × wages per hour

= 80 employees × 12 days + 12 days - 9 days × 8 hours × $24

= $230,400

5 0
3 years ago
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