Determine Growth Rate Of Company, Finance

Suppose you know that a company''s stock currently sells for $65 per share and the required return on the stock is 11%. You also know that the total return on the stock is evenly divided between capital gains yield & dividend yield. If it''s the company''s policy to always maintain a constant growth rate in it''s dividends. What is the current dividend per share ? 2. Gesto, Inc.., has an issue of preferred stock outstanding that pays a $4.50 dividend every year, in perpetuity. If this issue currently sells for $79.85 per share, what is the required return? 10. The stock price of Jenkins Co. Is $53. Investors require a 12% rate of return on similar stocks. If the company plans to pay a dividend of $3.15 next year, what growth rate is expected for the company''s stock price?
Posted by deepiti Kharodia | Posted Date: 8/9/2011 11:42:13 PM

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