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2 years ago

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The current dividend yield on CJ's common stock is 1.89 percent. The company just paid an annual dividend of $1.56 and announced

plans to pay $1.70 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock? Select one:
a. 12.75 percent
b. 13.39 percent
c. 9.08 percent
d. 15.82 percent
e. 10.86 percent

1 answer:

Wittaler [7]2 years ago

7 0

Answer: The correct answer is : e. 10.86 percent

Step-by-step explanation: The current yield is 1.89% = 1.89 / 100 = 0.0189

The rate of return (R) is:

R = 0.0189 + [ (1.70 - 1.56) / 1.56 ]

R = 0.0189 + 0.0897

R = 0.1086

R = 0.1086 x 100

R = 10.86%

The required rate of return is the minimum return that an investor needs to be calm, it is the amount of profit needed to justify continuing a project or an investment.

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[Q71 Suppose that the height, in inches, of a 25-year-old man is a normal random variable with parameters g = 71 inch and 02 = 6

viktelen [127]

Answer: (a) Percentage of 25 year old men that are above 6 feet 2 inches is 11.5%.

(b) Percentage of 25 year old men in the 6 footer club that are above 6 feet 5 inches are 2.4%.

Step-by-step explanation:

Given that,

Height (in inches) of a 25 year old man is a normal random variable with mean $g=71$ and variance $o^{2} =6.25$ .

To find: (a) What percentage of 25 year old men are 6 feet, 2 inches tall

(b) What percentage of 25 year old men in the 6 footer club are over 6 feet. 5 inches.

Now,

(a) To calculate the percentage of men, we have to calculate the probability

P[Height of a 25 year old man is over 6 feet 2 inches]= P[X> $74in$ ]

P[X>74] = P[ $\frac{X-g}{o}$ > $\frac{74-71}{2.5}$ ]

= P[Z > 1.2]

= 1 - P[Z ≤ 1.2]

= 1 - Ф (1.2)

= 1 - 0.8849

= 0.1151

Thus, percentage of 25 year old men that are above 6 feet 2 inches is 11.5%.

(b) P[Height of 25 year old man is above 6 feet 5 inches gives that he is above 6 feet] = P[X, $6ft$ $5in$ - X, $6ft$ ]

P[X > $6ft$ $5in$ I X > $6ft$ ] = P[X > 77 I X > 72]

= $\frac{P[X > 77]}{P[ X > 72]}$

= $\frac{P[\frac{X - g}{o}>\frac{77-71}{2.5}] }{P[\frac{X-g}{o} >\frac{72-71}{2.5}] }$

= $\frac{P[Z >2.4]}{P[Z>0.4]}$

= $\frac{1-P[Z\leq2.4] }{1-P[Z\leq0.4] }$

= $\frac{1-0.9918}{1-0.6554}$

= $\frac{0.0082}{0.3446}$

= 0.024

Thus, Percentage of 25 year old men in the 6 footer club that are above 6 feet 5 inches are 2.4%.

4 0

2 years ago

Copy and complete each table.

LUCKY_DIMON [66]

Answer:

5th term of sequence = -18

nth term of the sequence = -5n + 7

Step-by-step explanation:

Difference between successive and previous term of the output,

$T_{2}-T_{1}$ = -3 - 2

= -5

Similarly, $T_{3}-T_{2}=-8-(-3)$

= -5

There is a common difference 'd' = (-5)

Therefore, the sequence formed will be an arithmetic sequence.

First term of the sequence 'a' = 2

Explicit formula of an arithmetic sequence, $T_{n}$ = a + (n - 1)d [n = input value]

$T_{n}$ = 2 + (n - 1)(-5)

= 2 - 5n + 5

= -5n + 7

5th term of this sequence,

$T_{5}=2+(5-1)(-5)$

= 2 - 20

= -18

Therefore, 5th term of sequence = -18

nth term of the sequence = -5n + 7

3 0

1 year ago

A shoe factory produces 1.81 × 104 pairs of shoes each month. Estimate how many pairs of shoes the factory will produce if it ma

quester [9]

Answer:

2*10 ^6 shoes in 10 years

Step-by-step explanation:

1.81 × 10^4 pairs of shoes each month

1.2 × 10^2 months in 10 years

Multiply these together to determine the number of shoes in 10 years

1.81 × 10^4 * 1.2 × 10^2

We want to estimate so 1.81 is approximately 2 and 1.2 is approximately 1

2 × 10^4 * 1 × 10^2

Multiply the numbers

2*1 = 2

Add the exponent

10 ^ ( 4+2)

10 ^6

Put this back together

2*10 ^6

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2 years ago

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At a local grocery store, apples cost $0.50 each and bananas cost $0.30 each. The expression 0.50x + 0.30y can be used to find t

JulsSmile [24]

(1) x represents the number of apples bought, y represents the number of bananas.

(2) each term represents the total costs of a given fruit, so 0.50x is the total cost of apples and 0.30y is total cost of bananas.

(3) The coefficients are unit prices: coefficient 0.50 is the price of 1 apple, 0.30 is the price of 1 banana.

3 0

1 year ago

Which equation can be used to solve for c? Triangle A B C is shown. Angle A C B is 90 degrees and angle A B C is 35 degrees. The

aliina [53]

Answer:

The correct option is B) $c=\frac{5}{\cos35^0}$ .

Step-by-step explanation:

Consider the provided information.

Angle A C B is 90 degrees and angle A B C is 35 degrees.

The required figure is shown below:

We need to find the value of c.

Use the trigonometric function: $\cos\theta=\frac{Adjacent}{Hypotenuse}$

$\cos35^0=\frac{5}{c}$

$c=\frac{5}{\cos35^0}$

Hence, the correct option is B) $c=\frac{5}{\cos35^0}$ .

4 0

2 years ago

Read 2 more answers