year forever (g = −5%). If the company is in equilibrium and its expected and required rate of return is 15%, which of the following statements is CORRECT?a. The company”s dividend yield 5 years from now is expected to be 10%.b. The constant growth model cannot be used because the growth rate is negative.c. The company”s expected capital gains yield is 5%.d. The company”s expected stock price at the beginning of next year is $9.50.e. The company”s current stock price is $20.
You are watching: A stock is expected to pay a year-end dividend of $2.00
jonathanlewisforcongress.com:
Option (D) is correct.
Explanation:
Given that,
Stock is expected to pay a year-end dividend, D1 = $2.00
Dividend is expected to decline at a rate, g = 5% a year (g = −5%)
Required rate of return = 15%
Expected stock price at the beginning of the next year:
= $9.5
Therefore, the company”s expected stock price at the beginning of next year is $9.50.
Total fixed costs for Green Planes Inc. are $150,000. Total costs, including both fixed and variable, are $600,000 if 140,0
jonathanlewisforcongress.com:
The correct jonathanlewisforcongress.com is C.
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Explanation:
Giving the following information:
Total fixed costs for Green Planes Inc. are $150,000. Total costs, including both fixed and variable, are $600,000 if 140,000 units are produced.
First, we need to calculate the unitary variable cost:
Unitary variable cost= (total cost – fixed cost) / number on units
Unitary variable cost= (600,000 – 150,000)/ 140,000= $3.21 per unit
Now, we can calculate the total variable cost for 230,000 units:
Total variable cost= 3.21*230,000= $738,300
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11 months ago
If your Disney vacation cost $8,645 and you normally make $20 per hour, how many
Sophie <7>
The math comes out to about 54 days!
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Which fiscal policy strategy do you think policymakers would use in each of these scenarios? (
anzhelika <568>
The fiscal policy strategy for policymakers in the first scenario of rising inflation and real GDP up 4% could be to raise interest rates to make money more expensive to get a loan and thus cool inflation and in the second scenario if GDP is downn and unemployment is 10% would be to lower the interest rate to make borrowing easier to make it easier for potential employers to advance theri projects and thus promote employment.
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7 months ago
When used in return on investment (ROI) calculations, turnover equals sales divided by average operating assets.
zhenek <66>
TrueReturn to investment: margin+turnover Margin-net operating income/ salesTurnover-sales/average operating assets.
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8 months ago
How many feet are in 400 meters? (Full Sentence Response) Again… I know I asked this the last time, but you can handle it! *
konstantin123 <22>
Rounded to the nearest 10, there are 1312 feet in 400 meters.
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