Annual dividend on its common stock-market rate of return

Assignment Help Financial Management
Reference no: EM131317887

Northern Gas recently paid a $2.80 annual dividend on its common stock. This dividend increases at an average rate of 3.8 percent per year. The stock is currently selling for $26.91 a share. What is the market rate of return?

Reference no: EM131317887

Questions Cloud

Which of these influences on average adds least : Which influence adds more, on average, to a household's income: getting a professional degree, getting married, getting older, or moving to California? Which of these influences, on average, adds least?
Why review the disclosure of foreign loans for banks : Why review the disclosure of the market value of investments versus the book amount of investments for banks?- Why review the disclosure of foreign loans for banks?
Why review the disclosure of allowance for loan losses : Why review the disclosure of allowance for loan losses for a bank?- Why review the disclosure of nonperforming assets for banks?
Share of stock with a beta : A share of stock with a beta of 0.80 now sells for $42. Investors expect the stock to pay a year-end dividend of $1.5. The T-bill rate is 3% and the market risk premium is 8%. Suppose investors actually believe that the stock will sell for $45 at ..
Annual dividend on its common stock-market rate of return : Northern Gas recently paid a $2.80 annual dividend on its common stock. This dividend increases at an average rate of 3.8 percent per year. The stock is currently selling for $26.91 a share. What is the market rate of return?
Base in the percentage calculation : The bond has a face value of $1,000 and it matures in 13 years. Use the price determined from the first yield, 8%, as the base in the percentage calculation.
What are the expected rates of reimbursement : What are the expected rates of reimbursement for this time frame for each payer? What is your expected A/R? What rate should you charge for these services (assuming one charge rate for all payers)? (This gives you your total A/R.) Calculate the tot..
Discuss about the article-walk in my shoes : According to the text, many repeat violent offenders, even those who commit murder, rape, or assault, receive probation. Defend or critique the granting of probation for all who meet probation eligibility requirements. Support your response with c..
Bond outstanding-what is the coupon rate : Roadside Markets has a bond outstanding that matures in 10 years. The bond pays interest semiannually. The market price per bond is $925, the face value is $1,000 and the yield to maturity is 7.2 percent, what is the coupon rate?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the beta of your portfolio

You own $18,630 of Human Genome stock that has an assumed beta of 2.45. You also own $11,340 of Frozen Food Express (assumed beta = 1.95) and $10,530 of Molecular Devices (assumed beta = 0.59). What is the beta of your portfolio?

  Explain advantages and disadvantages of a call provision

What are the advantages and disadvantages of a call provision from the viewpoints of both a firm and its bondholders? If you were the CEO of a firm

  Financial statements if this decision goes unchallenged

Management’s Depreciation Decision . Great Basin Enterprises, a large holding company, acquired North Spruce Manufacturing, a medium-sized manufacturing business, from its founder who wishes to retire. What are the possible consequences of the contro..

  Suppose the federal reserve increased deposits

Suppose the Federal Reserve increased deposits by $100 billion, but the reserve requirement on all deposits was 100%. What impact would the change in deposits have on the money supply?

  Portfolio weights will decrease for the stocks in portfolio

Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return.The expected return of a portfolio is simply the weighted average of the expected returns of the investments wit..

  Dividends are anticipated to maintain a growth rate

The next dividend payment by Wyatt, Inc., will be $2.90 per share. The dividends are anticipated to maintain a growth rate of 4.75 percent, forever. If the stock currently sells for $49.40 per share, what is the required return?

  What will be the steady state receivables balance

Suppose that a clinic has third-party payer revenues of $10,000 a day. On average, it takes the clinic 50 days to collect from its payers. What will be the steady state receivables balance?

  Estimate present value of the tax benefits from depreciation

Your company is considering a new project that will require $794,000 of new equipment at the start of the project. The equipment will have a depreciable life of 8 years and will be depreciated to a book value of $146,000 using straight-line depreciat..

  Manufacture your own dividend by selling little bit of stock

You purchased 2,000 shares of Zero Technologies several years ago at $50 per share. The company does not pay a regular cash dividend. You want to “manufacture” your own dividend by selling a little bit of stock each quarter. The company’s stock is cu..

  Qualified dividend and long term capital gains distributions

You are planning to save $5k/year, at the end of each year, and invest into a diversified stock index fund. The fund is anticipated to yield an 9.4% total annual return, of which about 3% will be in the form of qualified dividend and long term capita..

  Calculate a portfolio return with weights

Calculate a portfolio return with weights of 0.25 for each stock. - Calculate a weighted beta with weights of 0.25 for each stock.

  Compute your total dollar return on this investment

Suppose you bought 250 shares of stock at an initial price of $48 per share. The stock paid a dividend of $.48 per share during the following year, and the share price at the end of the year was $51. Compute your total dollar return on this investmen..

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