Divided between capital gains yield and dividend yield

Assignment Help Financial Management
Reference no: EM13883749

Suppose your know that a company's stock currently sells for $73.25 per share and the required return on the stock is 7.31 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, what is the current dividend per share?

Omit the $ dollar sign and comma in your answer. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16).

Reference no: EM13883749

Questions Cloud

Research paper - attachment theories : Attachment or lack of attachment is one of the several psychological issues that can affect our behaviors from childhood to death. Attachment behavior issues link into parenting styles and trust versus mistrust issues
Design an address decoding circuit : 9.Design an address decoding circuit for the following 68HC11 system: 8KB EPROM starting at address $E000
Depreciation tax shield : Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.) Sales $ 676,900 Costs 431,800 Depreciation 104,400 EBIT $ Taxes (35%) Net income $ Calculate the OCF. OCF ..
Describe the organization of a flat file database : Describe the organization of a flat file database.
Divided between capital gains yield and dividend yield : Suppose your know that a company's stock currently sells for $73.25 per share and the required return on the stock is 7.31 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield.
What is the maindifference between the fms attack : What is the maindifference between the FMS attack and Chopchop attack? Clearly explain youranswer in 600 words.
Describe the trade offs of using the hierarchical : Describe the trade offs of using the hierarchical model of database storage.
Depreciated straight-line to zero over eight-year tax life : Consider an asset that costs $664,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $178,000. If the relevant tax rate is 35..
Explain the difference between nonessential, essential : Describe the process of protein digestion in the stomach and in the small intestine. Include the roles of hydrochloric acid, pepsin, proteases, and peptidase in your answer.

Reviews

Write a Review

Financial Management Questions & Answers

  Value bond pays coupon rate

A $1000 par value bond pays a coupon rate of 8.2 percent. The bond makes semiannual payments, and it matures in four years. If investors require a 10 percent return on this investment, what is the bond's price?

  Calculate the yield using a geometric average

One-year Treasury securities yield 3.5%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 6.45%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield..

  Find the present value of these cash flows

You have accumulated some money for your retirement. You are going to withdraw $$99035 every year at the end of the year for the next 24 years. How much money have you accumulated for your retirement? Your account pays 10.87 percent per year, compoun..

  What is the financial break-even quantity

Consider a project with the following data: accounting break-even quantity = 31,160 units; cash break-even quantity = 14,680 units; life = 11 years; fixed costs = $205,921; variable costs = $22 per unit; required return = 13 percent; depreciation = s..

  What is the companys net income

Recreational Supplies Co. has net sales of $12,660,000, an ROE of 23.00 percent, and a total asset turnover of 2.52 times. If the firm has a debt-to-equity ratio of 0.76, what is the company’s net income?

  What is the amount of the shareholders equity

A firm has common stock (par value) of $90, paid-in surplus of $180, total liabilities of $350, current assets of $420, and fixed assets of $590. What is the amount of the shareholders' equity (including retained earnings)?

  Calculate the average return per period for an investor

Calculate the average return per period for an investor who bought 100 shares of the Closed Fund at the initiation and then sold her position at the end of Period 4.

  Modernization of pumping station in water treatment facility

Currently, two options are available for modernization of a pumping station in a water treatment facility. Option 1 is to install a pumping system which is more durable at a cost of $20,000. With this option, the system will require to be replaced ev..

  What is the break-even cost per kilowatt-hour

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.47 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs ..

  What is future value of her winnings at time of payment

A lottery winner will receive $1 million at the end of each of the next ten years. What is the future value (FV) of her winnings at the time of her final payment, given that the interest rate is 8.5% per year?

  Number of pints made and sold to the nearest integer

Initially, you have lost 20,000 dollars in the stock market and you continue to lose 350 dollars per month. In how many months will it be before your losses total 33,040 dollars, thus your balance is - 33,040? What is the monthly breakeven point for ..

  When social marginal benefit curve of reduction of pollution

When the social marginal benefit curve of reduction of pollution is locally flat, which of the following generally makes sense in the presence of uncertainty about costs of reduction? Which of the following are questions answered by public finance? W..

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