Dividend-paying stock

Assignment Help Financial Management
Reference no: EM131084217

You hold 100 shares of Harrington Motors, a dividend-paying stock, that generated a total return for 2012 of -5.05 percent. Which one of the following must be true?

Harrington is experiencing supernormal growth.

Harrington's dividend must be constant.

Harrington's dividend yield must be zero.

Your required rate of return for this stock increased over the year.

Harrington stock has a negative capital gains yield.

Reference no: EM131084217

Questions Cloud

What is npv-mirr and irr of project if expected saving : You have been asked to analyze the possibility of replacing a bocce ball machine that your company bought 5 years ago. It had an expected life of 10 years at the time of purchase and cost $1,200,000 to purchase. Your firm has been depreciating the eq..
What is the bond nominal yield to call : Williams Industries has a bond outstanding with 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,075. What is the bond’s ..
What was his percentage return on investment : Dave bought a rental property for $725,000 cash. One year later, he sold it for $750,000. Suppose Dave invested only $105,000 of his own money and borrowed $620,000 interest-free from his rich father. What was his percentage return on investment?
How many units must be sold to break even : A manufacturer has fixed cost of $500,000 and variable costs per unit of $7.00. The final product sells for $32.00 a unit. How many units must be sold to break even?  If the fixed cost increased, would the new break-even point be higher or lower? If ..
Dividend-paying stock : You hold 100 shares of Harrington Motors, a dividend-paying stock, that generated a total return for 2012 of -5.05 percent. Which one of the following must be true?
When depreciable asset is sold at whatever market price : When a depreciable asset is sold at whatever market price it was able to be sold for, a tax gain or tax loss on disposal is calculated, based on the ________ of the asset at the time of disposal.
Calculate operating and total cash flows : You are hired to see if a new project is worthwhile or not in a 5 year period. This company is considering the sale of a new product representing an increase in sales of .24% over their last year end figures. In order to do so, the company would not ..
Annual salary will be left-perpetuity investment : Alex Rodriguez recently signed a contract with the Texas Rangers that will pay him approximately 250 million dollars over the next 10 years. In this problem, assume that he will receive his pay annually in 25 million dollar installments, and that he ..
What is the value of the futurediv stock : FUTUREDIV INC doesn't pay divdends now, but will pay a dividend of $4.1, 7 years from now and will increase dividends by 2.7% per year thereafter. If investors require a return of 10.1% on this stock, what is the value of the FUTUREDIV stock?

Reviews

Write a Review

Financial Management Questions & Answers

  The risk-free interest rate applicable

The current price of sugar is 15 cents per pound. The carrying cost of sugar is 0.10 cents per pound per month, to be paid at the beginning of the month. The risk-free interest rate applicable is 6% per annum. Find the forward price of a pound of sug..

  Corporate finance-how much will it cost you to buy a seat

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. Schenkel has 370,000 shares outsta..

  Prepared to make equal annual deposits

You want to have $81,000 in your savings account 12 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.80 percent interest, what amount must you deposit each year?

  Mutually exclusive projects and contingent projects

Raider Productions has to decide whether to build its warehouse in Dallas or Houston. This decision falls into the class of a. independent projects. b. mutually exclusive projects. c. contingent projects. d. marginal projects.

  Call option has exercise price equal to current stock price

Draw a diagram showing the variation of an investor’s profit and loss with the terminal stock price for a portfolio consisting of: In each case, assume that the call option has an exercise price equal to the current stock price

  Calculate the value of the firm

Calculate the value of the firm and analysts now expect that dividends will grow annually by 3%. Calculate the firm value."

  Taken out the cash advance

A student takes a $200 cash advance on his credit card in January. The cash advance fee is 2% of the amount withdrawn. In addition, he/she does not pay off the $200 balance on the credit card at month end. Assuming the beginning January 1 balance was..

  What would be the power of the type of test used in problem

What test can be used to test the hypothesis that an increase in amount of sleep will change the number of medical errors per day?

  Calculate the projects npv

Calculate the value of the option if the company waits one year. Should the company wait or go ahead with the project now?

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

  The yield on corporate bond

The yield on a corporate bond is 9%, and it is currently selling at par. The marginal tax rate is 30%. A par value municipal bond with a coupon rate of 5.75% is available. Which provides a better return to the investor?

  Calculate economic order quantity

Cheeseburger and Taco Company purchases 11,446 boxes of cheese each year. It costs $10 to place and ship each order and $7.78 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Calculate..

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