Compute the percentage total return

Assignment Help Finance Basics
Reference no: EM1343829

1. (Excel) Stock Values: Johnson Catering Corporation will pay a $2.65 per share dividend next year. The company pledges to increase its dividend by 4.75 percent per year, indefinitely. If you require a return of 11 percent on your investment, how much will you pay for the company's stock today?

2. Calculating Returns: Suppose a stock had an initial price of $75 per share, paid a dividend of $1.20 per share during the year, and had an ending share price of $86.
a. Compute the percentage total return.
b. Compute the dividend yield.
c. Compute the capital gains yield

 

Reference no: EM1343829

Questions Cloud

Determining shareholder rights plan : Apple Company is one of the best-known global technology companies. Who are Apple's primary consumers? Current and potential competitors? Suppliers?
Explain what is aq&qs indifference level of ebit : Explain what is AQ&Q's indifference level of EBIT and provide its current situation, might it benefit from increasing or decreasing its use of debt? Explain.
Using straight line method to solve problem : DNA Corporation issued $4,000,000 in 8%, 10-year bonds on February 1, 2010, at 115. Semiannual interest payment dates are January 31 & July 31.
Primitives-remove ambiguities in algorithm-s representation : Describe how the use of primitives helps remove ambiguities in an algorithm's representation.
Compute the percentage total return : Johnson Catering Corporation will pay a $2.65 per share dividend next year. The firm pledges to rise its dividend by 4.75% per year, indefinitely.
Calculating real returns and risk premiums : Returns: Suppose you bought a 6 percent coupon bond one year ago for $1040. The bond sells for 1,063 today. Suppose a $1,000 face value,
Javascript for metric conversions : Write a javascript that will assist the user with metric conversions. Your program should allow the user to specify the names of the units as strings.
Calculate arithmetic average return : You've observed the following returns on Crash-n-Burn Computer's stock over the past 5 years: 115, -115, 18%, 23 percent, and 10%.
Ramifications of business merger activity : Merger activity continues to be a much-used strategic option. From 2008 to 2009, M&A activity completed totaled approximately $5 trillion.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Determining the value of bond

What impact does number of years till maturity have on the value of bond? Mention three capital budgeting methods (decision rules) and rank them from least to most useful. Defend your ranking.

  Financial planning and forecasting

Find out the present value of $800 to be received at the end of eight years, supposing the following annual interest rate?

  Beta analysis of hewlett packard

You are analyzing the beta for Hewlett Packard and have broken down the company into four broad business groups, with market values and betas for each group.

  Detailed explanation to time value of money

Choose two other companies in same industry. One should be one which you would pay less for a $2,000 bond than you would from Under Armour, Inc and another one that you would pay more for a $2,000 bond from Under Armour, Inc. Would pay more or less..

  Question about capital asset pricing model

What are the critical assumptions in Capital Asset Pricing Model (CAPM)? How do these affect its validity as a way to estimate equity cost of capital?

  An effective way for firms to improve the liquidity

ADRs are considered an effective way for firms to improve the liquidity of their stock.

  Salvage value of equipment

Dividends paid to a company's own stockholders of $80,000 would be shown on company's statement of cash flows prepared under indirect techniques as:

  Discuss on investment plan for peterson music

Discuss on Investment plan for Peterson Music has the chance to purchase the copyright to a new album of songs

  Compute npv depreciation using simplified straight-line

Compute NPV Depreciation using simplified straight-line method and cost of new preferred stock.

  Posting journal entries into a worksheet

Posting Journal entries into a worksheet - Prepare the general journal entries or enter into a worksheet the transactions completed in February, 2001

  Important information of current value per share

Atlas Home Supply has paid a constant annual dividend of $2.40 a share for the past 15 years. What is the current value per share?

  Computation of risk free rate of return

Computation of Risk free rate of return and Suppose that securities A and B are perfectly negatively correlated

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd