The common stock of Cranberry Inc is selling for $26.75 on the open market. Next year's dividend is expected
to be $3.68, and the growth rate of this company is estimated to be 5.5%.
If Richard Dean, an average investor, is
considering purchasing this stock at the market price, what is his expected rate of return?
R = (D/V) + g
R = ($3.68/$26.
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Janet planned to purchase a McDonald's franchise. Meanwhile, Jason decided to open his own sandwich shop. Both decided to finance their new business ventures by applying for bank loans. Janet's loan application was approved, but Jason's was denied
Which of the following is the most likely explanation for these results?A) Banks view franchises as having fewer risks than other start-up businesses. B) Banks can charge higher interest rates when financing franchisees. C) Banks consider women business owners to present fewer risks than those who are men. D) Banks prefer to lend to companies that have the potential of a public stock offering. E) Banks are not allowed to loan to customers starting a business from scratch.
Indicate whether each of the following statements about bonds is true or false._____ a) The carrying value of a bond increases over time if the bond was issued at a premium._____ b) At the end of the term of the bonds, the carrying value of a bond issue is equal to the issue price._____ c) If bonds are sold below face value, the difference between the issue price and the face value is called the bond discount._____ d) The payment of interest is an operating activity on the statement of cash flows._____ e) The issuance of bonds does not appear on the statement of cash flows.
What will be an ideal response?
When Francis Bacon recommended we should "…guard adventures with certainties that may uphold losses…," he was referring to the process diversifying one's investment portfolio
a. True b. False
A(n) ________ is a legal obligation to pay money in the future.
A. equity capital B. gift C. debt D. stake