A) The next dividend per share by Food Rabbits Inc., will be $2.85. The dividends are anticipated to maintain a 6% growth rate forever. If the current share price of Food
Rabbits currently is $58, find out (1) the required return (2) dividend yield and (3) the
expected capital gains yield. (5 marks)
b) Last month, Kowloon Airlines Company Limited, which had been having trouble
with income drops and cost overruns caused by the worldwide pandemic, announced
that it determined “temporarily suspending the dividend payments due to the cash flow
crunch associated with pandemic.” The company’s stock price dropped from $7.10 to
$5.95 when this announcement was made. Briefly explain why the announcement
would cause this change in the stock price.

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )

reducing the scale of the market for a new product.

answer; ///blank(1) 75%; blank(2) 40%;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.