Estimate the required rate of return, Cost Accounting

a)     Company X is expected to maintain a constant 7% growth rate in their dividends, indefinitely. If the company has a dividend yield of 4%, what is the required return on their shares?

b)    Company Y shares currently sell for $60 per share. The required rate of return is 14% on their shares. If the company maintains a constant 7% growth rate in dividends, what was the most recent dividend paid per share?

c)     Company Z next dividend payment will be $3,50 per share. Dividends are expected to maintain an annual growth rate of 6% in perpetuity. If the company shares are presently selling at a market price of $55:

  • What is the required rate of return?
  • What is the dividend yield?
  • What is the expected capital gains yield?

 

 

Posted Date: 3/29/2013 2:41:04 AM | Location : United States







Related Discussions:- Estimate the required rate of return, Assignment Help, Ask Question on Estimate the required rate of return, Get Answer, Expert's Help, Estimate the required rate of return Discussions

Write discussion on Estimate the required rate of return
Your posts are moderated
Related Questions
Advantage and Disadvantages of Zero Based Budgeting Advantages 1. Resources allocation is more efficient. 2. Focus attention on values for money and makes clear relat

How relevant to the decision are the $800(000) initial cost of the project and the operating losses of $300(000)? Calculate the incremental liquidation cash flows for the abando

Hello, I''m currently doing a research on a company and planning an Activity Based Costing system since the company is using Traditional Costing system to allocate the overhead to

Explain:- Q Why is the statement of cash flows useful? Q. How is it possible for a company to suffer a net loss for a given year, yet produce a positive net cash flow from opera

For your assignment, discuss when the government and nonprofit organizations would use each of the following funds: Capital projects fund Debt service fund Special r

how to treat an increase in output on marginal costing

asdfdf afd s

Division B uses  normal  costing in its job-order costing system, with manufacturing overhead  applied  based on direct labour hours.  You have obtained the following information a

A foreign company plans to clear several dozen acres of ecologically valuable mangrove swamp in Vietnam for the creation of a shrimp aquaculture facility. This decision will create

9. When in the management process do managers seek an answer to the question "Did we meet our cost-reduction goals for non-value-adding activities?" a. Planning b. Performing c. Ev