What is the required rate of return, Financial 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:

  1. What is the required rate of return?
  2. What is the dividend yield?
  3. What is the expected capital gains yield?
Posted Date: 3/19/2013 5:50:55 AM | Location : United States







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

Write discussion on What is the required rate of return
Your posts are moderated
Related Questions
Identify the various prices for job To identify the various prices for job, there are numerous points to be considered, including: ?How many garages shall we visit? ?What

Q. What is Reconnaisance Survey explain? This item should apply to all rough and rapid investigations of an area with a view to determine the technical feasibility and approxim

a. Conversion cost was 140,000 and was four times the prime cost b. Direct materials used in production equaled 5,000 c. Cost of goods manufactured was 154,000 d. Ending work in pr

Calculate the DuPont Model, given the following information: cash=$16,080; accounts receivable= $9,500; prepaid = $3,150; supplies =$675; equipment =$25,200; accumulated depreciati

Q. Estimate cost of equity using market values? The cost of equity as well as cost of debt should always be estimated using market values. If the approximate cash flows of a

Brazil Corporation was organized on January 1, 1999. It is authorized to issue 20,000 shares of 6%, $50 par value preferred stock, and 500,000 shares of common stock with a par val

Below is information about the spot and forward rates for three currencies against the US dollar (USD): Currency (exchange rate) Spot Rate Six-month forward rate Euro (EUR)

Preparation of cashflow statements IAS 7 recommends that the cashflow statement can be prepared using two methods:- I) Direct method Whereby, cash from operations is deter

Q. Calculate PV of cash flows? Estimated market value                                              $116·26 per $100 of debentures The value of 45 shares in 5 years' tim

I am working on the comprehensive probelm and I can not figure out the trial balance. Where am I going wrong?