Answer:
Dividend yield= 3.53%
Explanation:
The dividend yield is the proportion of the market price that is earned as dividend. The higher the dividend yield the better for the investor.
The dividend yield is calculated as follows:
Dividend yield = Dividend paid /Current market price per share × 100
Dividend yield = 1.40/39.70× 100= 3.52
Dividend yield= 3.53%
Answer:
$20.83
Explanation:
The computation of the cost of preferred stock is shown below:
Cost of preferred stock = (Dividend × par value) ÷ (current selling price) × 100
= (10% × 100) ÷ ($48) × 100
= 10 ÷ 48 × 100
= $20.83
Simply we divide the dividend by the current selling price so that the cost of preferred stock can be computed
All other information which is given is not relevant. Hence, ignored it
Answer:
B. The same output level as before.
Explanation:
If there is a war broke out in a country and because of the war a large potion of the country's capital stock is destroyed but the thing that is unchanged is saving rate.
So according to the solow model the output will grow and the steady state that is new will be the same level of output as before.
Answer:
Price of stock=$ 77.88
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
The price of the stock will the sum of the present value of the growing annuity and the growing perpetuity
Present value of dividend from year 1 to 8
The PV of the growing annuity = A/r-g) ( 1- (1+g)/(1+r)^n )
A- dividend payable now , r- required of return, g-growth rate, number of years
PV = (2.30×1.23)/(0.15-0.23)× (1- (1.23/1.15)^8) = 25.199
PV of Dividend from year 9 and beyond:
P = D× g/(r-g)
This will be done in two steps:
Step 1: PV(in year 8)of dividend = 2.30× 1.23^8×1.07/(0.15-0.07) = 161.16
Step 2 : PV in year 0 = 161.16× 1.15^(-8)= 52.684
PV of Dividend from year 9 and beyond = 52.684
Price of stock = 25.19 + 52.68= 77.88
Price of stock=$ 77.88
Answer:
$168,000
Explanation:
Given
Dartmouth Corporation
Contribution format Income Statement
For the month of June.
Sales (2,800 units) $ 263,200
Variable costs 106,400
Contribution margin 156,800
Fixed costs 135,000
Operating profit $ 21,800
We calculated the sales revenue and the variable costs by dividing the total costs with the number of units and multiplying it with 3000 units to get contribution margin for 3000 units.
Calculated.
Dartmouth Corporation
Contribution format Income Statement
For the month of June.
Sales ( 3000 units) ($ 263,200 / 2800) * 3000= $ 282000
Variable costs (106,400 / 2800) * 3000= $ 114000
Contribution margin $ 168,000
Fixed costs 135,000
Operating profit $ 33,000
Answer:
80
Explanation:
According to the given situation, the computation of n is shown below:-
EXP[27.72δ]=2
δ =0.025
m = 1 ÷ 2
(1 + 0.025 ÷ (1 ÷ 2))^n ÷ 2 = 7.04
n ÷ 2 × ln(1.05)=ln(7.04)
n ÷ 2=40
n = 80
Therefore for computing the n we simply applied the above formula i.e. by considering all the information given in the question
Hence,the n is 80
To find the number of years it takes for an investment of $1 to increase to $7.04 at a nominal rate of interest numerically equal to δ and convertible once every two years, we can use the formula A = P(1 + r/m)^mt. Using this formula, we can solve for t by substituting the given values into the equation and solving for t using logarithms.
To find n, the number of years it takes for an investment of $1 to increase to $7.04 at a nominal rate of interest numerically equal to δ and convertible once every two years, we can use the formula:
A = P(1 + r/m)mt
Where A is the final amount, P is the initial investment, r is the nominal rate of interest, m is the number of times interest is compounded per year, and t is the number of years.
In this case, A = $7.04, P = $1, r = δ, and m = 2 (since it is convertible once every two years). Using this information, we can solve for t:
$7.04 = $1(1 + δ/2)2t
Divide both sides by $1:
7.04 = (1 + δ/2)2t
Take the logarithm of both sides:
log(7.04) = log((1 + δ/2)2t)
Apply the power rule of logarithms:
log(7.04) = 2t * log(1 + δ/2)
Divide both sides by 2 * log(1 + δ/2):
t = log(7.04) / (2 * log(1 + δ/2))
Plug in the value of δ to find the value of t.
Learn more investment here:
#SPJ3
I believe the answer would be $110,000; $50,000