Answer:
The holding period return is 8%
Explanation:
In this question we need to find the holding period return for the stock, and for that we would need to know what is the stocks current price, what would the stocks price be in one year and how much dividend it will pay during the year. Their last dividend paid was $4 and their dividend is expected to grow at 5% in the future so the dividend paid in the current year would be 4*1.05= 4.2.
To find the current price of the stock we will use the DDM formula
DDM= D*(1+G)/R-G
(4*1.05)/(0.08-0.05)
Price = 140
Now we need to know what the stocks price would be in one year. For that we need to know the previous dividend which is 4.20, the growth rate which is 5% and the required rate of return which is 8%
DDM= (D*(1+G)/R-G
4.2*1.05/0.08-0.05
Price = 147
So now we know the current price, current year dividend and year end price we can calculate the holding period return.
Holding period return = (Dividend +(End of period price-Initial Price))/Initial Price
Dividend = 4.20
End Period Price = 147
Initial Price = 140
Holding period return = 4.20+(147-140)/140
=11.20/140
=0.08
=8%
Answer:A
Explanation: bc i am a nerd xd
You can be.
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Good luck!
Answer:
The answer is below
Explanation:
QuickBooks online is widely known as a software tool often used for accounting or financial operations. It can be used to monitor income and expenses.
Therefore, in this case, the two (2) Vendor workflows that will enable her to create a report with his data are the following:
1. Create a bill with product/service items > pay bills
2. Create expense with product/service items
Based on Raph's stable gross monthly income, the maximum total debt allowed per month is<u> $1,044</u>
Most conventional lenders prefer to lend to a person whose debt to income ratio is 36% and below.
Ralph's maximum debt allowed is therefore:
<em>= Debt to income ratio x Stable gross income </em>
= 36% x 2,900
= $1,044
In conclusion, Ralph's maximum debt is $1,044
Find out more about debt to income ratio at brainly.com/question/24814852.
