### Capital gains yield and dividend yield

Assignment Help Financial Management
##### Reference no: EM13723822

Suppose you know a company's stock currently sells for \$70 per share and the required return on the stock is 16 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, the current dividend is \$__________ per share. (Do not include the dollar sign (\$). Round your answer to 2 decimal places. (e.g., 32.16))

#### Questions Cloud

 What is the annual dividend yield : The stock of Pills Berry Company is currently selling at \$60 per share. The firm pays a dividend of \$1.80 per share. What is the annual dividend yield? If the firm has a payout rate of 50 percent, what is the firm’s P/E ratio? Fund used by a not-for-profit as a safety reserve : Do you think that a not-for-profit organization’s board can release the restrictions on money in a strike fund and use it for general operations? Does it matter whether we are talking about a strike fund held by a steel workers’ union to pay benefits.. Pledges to increase its dividend : Metroplex Corporation will pay a \$3.80 per share dividend next year. The company pledges to increase its dividend by 3.0 percent per year indefinitely. If you require an 11.9 percent return on your investment, you will pay \$___________ for the compan.. Define companys target market : Define your company's target market. Assess your company's market competition. Use the factors listed in the course text graphic to assess your company's market competition Capital gains yield and dividend yield : Suppose you know a company's stock currently sells for \$70 per share and the required return on the stock is 16 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's th.. What is the fair price of investment : An investment pays \$2,100 per year for the first 3 years, \$4,200 per year for the next 8 years, and \$6,300 per year the following 12 years (all payments are at the end of each year). If the discount rate is 8.75% compounding quarterly, what is the fa.. Most recent dividend per share paid on the stock : Teder Corporation stock currently sells for \$30 per share. The market requires a 13.5 percent return on the firm's stock. If the company maintains a constant 8 percent growth rate in dividends, the most recent dividend per share paid on the stock was.. Why did many americans critize the mexican war : Why did many Americans critize the Mexican War? How did they see expansion as a threat to American liberties? How did western expansion affect the sectional tensions between the North and South? New purchase price for the existing stockholders : Katie Homes and Garden Co. has 10,640,000 shares outstanding. The stock is currently selling at \$52 per share. If an unfriendly outside group acquired 25 percent of the shares, existing stockholders will be able to buy new shares at 30 percent below ..

### Write a Review

#### Questions regarding financial management

Explain what the information needs of various stakeholders are for their respective decision making needs.

#### Question 1nbsp allen air lines must liquidate some

question 1nbsp allen air lines must liquidate some equipment that is being replaced. the equipment originally cost 12

#### Determine the price of the souvenirs

Calculate with explanation the unit costs of the souvenirs. You should state your assumption and determine the price of the souvenirs and explain any other information that might be relevant for deciding the price

#### Cost benefit analysis

Use the cost benefit analysis to recommend to Smith whether Sun Gas should proceed will the Web based ordering system. Give your reasons, showing supporting calculations.

#### The caraway seed company sells specialty gardening seeds

the caraway seed company sells specialty gardening seeds and products primarily to mail-order and internet customers.

#### Evaluate the depreciation on the building

Evaluate the depreciation and what was Happe's Interest Expense on the bond during fiscal year 2012? What was Andersen Telecom's depreciation expense for tax purposes in fiscal year 2012?

#### Evaluate the integrated control theory model presented by

evaluate the integrated control theory model presented by klein 1989 and its usefulness in contemporary organizations.

#### What will be the future value of johns bank account

John has some extra cash today in the amount of \$240 and places the money in the bank for 9 years. John expects to have extra cash one-year from today in the amount of \$590, and will leave this second amount in the bank for 8 years. All savings earn ..

#### What is the yield to maturity for the investment

Air products and Chemicals sold \$125 million of notes in Nov. of 2003 with a December 1. 2010, maturity date. The bonds were sold at a discount of \$99.721 per \$100 with a coupon rate of 4.125%. Assume that bonds with a face value if \$10,000 were purc..

#### The exchange rate between the us dollar and the swiss franc

the exchange rate between the us dollar and the swiss franc is sf1.31 and the exchange rate betweent he dollar and the

#### Criticism that a proposed it architecture

How would you respond to the criticism that a proposed IT architecture is not feasible based on today's technology?

#### Internal and the sustainable rates of growth

Why is it important for managers to understand the importance of both the internal and the sustainable rates of growth?