Connection between the value of shares and dividends

Assignment Help Financial Management

Reference no: EM132070925

Company X is paying an annual dividend of $1.35 and has decided to pay the same amount forever. How much should you pay for the stock, if you want to earn an annual rate of return of 9.5% on this investment?

You want to purchase common stock of Company X and hold it for 7 years. The company just announced they will be paying an annual cash dividend of $6.00 per share for the next 9 years. How much should you pay for the stock, if you will be able to sell the stock for $28 at the end of seven years and you want to earn an annual rate of return of 11% on this investment?

What is the connection between the value of shares and dividends.?

Reference no: EM132070925

Questions Cloud

What areas of disagreement emerge while contracts : Give examples and also explain how these disagreements can be solved in relation to airline labor relations.

Economic periods is the price of precious metal : During which of the following economic periods is the price of a precious metal, such as gold, silver or platinum, likely to increase?

What is the sustainable growth rate : The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 17,800 Current assets $ 11,300 Debt $ 15,800 Costs.

The importance of marketing in organizational success : Write a 700- to 1,050-word paper in which you define integrated marketing communications and the role it plays in program development.

Connection between the value of shares and dividends : What is the connection between the value of shares and dividends.?

What is the internal growth rate : Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 37 percent dividend payout ratio.

Liabilities and equity total revenue and net income : Give the information on the following: assets, liabilities, and equity total revenue and net income.

Research suggests many health benefits of eating vegan diet : Research suggests many health benefits of eating a vegetarian or vegan diet. Additionally, there are some global/environmental benefits.

Identify how the changing demographics will impact : Describe how household patterns in the United States are anticipated to change over the next few years.

User Account

All Pages