Dividend-paying stock

Assignment Help Financial Management
Reference no: EM131084217

You hold 100 shares of Harrington Motors, a dividend-paying stock, that generated a total return for 2012 of -5.05 percent. Which one of the following must be true?

Harrington is experiencing supernormal growth.

Harrington's dividend must be constant.

Harrington's dividend yield must be zero.

Your required rate of return for this stock increased over the year.

Harrington stock has a negative capital gains yield.

Reference no: EM131084217

Questions Cloud

What is npv-mirr and irr of project if expected saving : You have been asked to analyze the possibility of replacing a bocce ball machine that your company bought 5 years ago. It had an expected life of 10 years at the time of purchase and cost $1,200,000 to purchase. Your firm has been depreciating the eq..
What is the bond nominal yield to call : Williams Industries has a bond outstanding with 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,075. What is the bond’s ..
What was his percentage return on investment : Dave bought a rental property for $725,000 cash. One year later, he sold it for $750,000. Suppose Dave invested only $105,000 of his own money and borrowed $620,000 interest-free from his rich father. What was his percentage return on investment?
How many units must be sold to break even : A manufacturer has fixed cost of $500,000 and variable costs per unit of $7.00. The final product sells for $32.00 a unit. How many units must be sold to break even?  If the fixed cost increased, would the new break-even point be higher or lower? If ..
Dividend-paying stock : You hold 100 shares of Harrington Motors, a dividend-paying stock, that generated a total return for 2012 of -5.05 percent. Which one of the following must be true?
When depreciable asset is sold at whatever market price : When a depreciable asset is sold at whatever market price it was able to be sold for, a tax gain or tax loss on disposal is calculated, based on the ________ of the asset at the time of disposal.
Calculate operating and total cash flows : You are hired to see if a new project is worthwhile or not in a 5 year period. This company is considering the sale of a new product representing an increase in sales of .24% over their last year end figures. In order to do so, the company would not ..
Annual salary will be left-perpetuity investment : Alex Rodriguez recently signed a contract with the Texas Rangers that will pay him approximately 250 million dollars over the next 10 years. In this problem, assume that he will receive his pay annually in 25 million dollar installments, and that he ..
What is the value of the futurediv stock : FUTUREDIV INC doesn't pay divdends now, but will pay a dividend of $4.1, 7 years from now and will increase dividends by 2.7% per year thereafter. If investors require a return of 10.1% on this stock, what is the value of the FUTUREDIV stock?

Reviews

Write a Review

Financial Management Questions & Answers

  What is this year deviend yield and year capital gains yield

Suppose a company has net income of $1000,000 and a plowback ratio of 40%. There are 50,000 shares of stock outstanding. The company plans to increase dividends by 22% each year for the next 2 years and then apply a 2.25% growth rate to dividends eac..

  Calculation and interpretation of corporate cost of capital

How is a business’s cost of debt estimated? Its cost of equality? Explain the calculation and interpretation of the corporate cost of capital.

  What is the present value of all the shops future profits

Last year, a barber shop generated $100,000 in profit. Assume that the shop's profits grow at 5% per year and that cash flows are discounted at 10% per year. If profits are received at the end of each year, what is the present value of all the shop's..

  Risk-level equivalent to that of the overall market

Your portfolio has a beta of 1.27. The portfolio consists of 17 percent U.S. Treasury bills, 29 percent in stock A, and 54 percent in stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?

  Pledges to increase its dividend

Use BAII Plus Calculator and show calculator entry for the following: Mickelson Corporation will pay a $2.65 per share dividend next year. The Company pledges to increase its dividend by 4.75 percent per year indefinitely. If you require a return of ..

  Estimate present value of the tax benefits from depreciation

Your company is considering a new project that will require $767,000 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 $143,000 using straight-line depreciat..

  What is total return to investor who held the bond

An 8.7%, twenty-year bond yields 6.7%. If the yield remains unchanged, what will be its price one year hence? Assume annual coupon payments. What is the total return to an investor who held the bond over this year?

  What type of hedging transaction might be accounted

Johnson & Johnson indicates that it expects that substantially all of the balance of deferred net gains on derivatives will be reclassified into earnings over the next 12 months as a result of transactions that are expected to occur over that period...

  What was the stock price the split

Loud Music Inc recently completed a 3-for-1 stock split. Prior to the split, its stock sold for $120 per share. What was the stock price following the split?

  What face value of life insurance is needed

Anna and mike are considering their life insurance options. They both make about 50,000/year. In the event that something happens to one of them, they figure they will need to cover the other persons salary at 80% for 10 years. what face value of lif..

  Estimated intrinsic value of equity on price-per share basis

You have just learned that B&B has undertaken a major expansion that will change its expected free cash flows to in -$10 million in 1 year, $20 million in 2 years, and $35 million in 3 years. After 3 years, free cash flow will grow at a rate of 5%. W..

  What is intrinsic value of firm based on projected dividends

Whole Foods’ current dividend per share is $1.07. You expect dividends to grow at 5% per year into perpetuity. Whole Foods’ beta is 0.85. The current risk free rate is 2.9%, and the expected return on the market portfolio is 7.4%. what is the intrins..

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