Factory Stores pays annual dividends and increases those dividends by 2 percent each year. The stock is currently valued at $12 a share and has a required return of 16 percent. You own 400 shares of this stock. What is the total amount of dividend income you should expect to receive next year?

$672

Explanation:

Given:

Growth rate = 2% = 2/100 = 0.02

Current value of stock = $12

Required return = 16% = 16/100 = 0.16

Total number of stock = 400 shares

Computation of Dividend income per stock:

Current value of stock = Dividend income / (Required return - Growth rate)

$12 = Dividend income / (0.16 - 0.02)

$12 = Dividend income / (0.14)

Dividend income = $12 × 0.14

Dividend income = $1.68

Computation of Dividend income next year:

Dividend income next year = Dividend income × number of stock

= $1.68 × 400

= $672

our agriculture industry and our business industry

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi