Market capitalization rate-produce level dividend stream

Assignment Help Financial Management
Reference no: EM13885220

Company Y does not plow back any earnings and is expected to produce a level dividend stream of $5.20 a share. If the current stock price is $40.20, what is the market capitalization rate? (Round your answer to 2 decimal places.)

Market capitalization rate= %

Reference no: EM13885220

Questions Cloud

The expected return on an individual asset depends : The expected return on an individual asset depends only on that assets _______ risk.
Show endows an annual lecture series : When Professor Show endows an annual lecture series at School of Public Administration at the University he stipulates that only the interest income derived from his gift may be used for to fund the program. The SPA places the gift in its ___________..
Assume interest rates for bonds : Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer. What other f..
Required return-what is the current share price : Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next eight years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $16.50 per share 9 years..
Market capitalization rate-produce level dividend stream : Company Y does not plow back any earnings and is expected to produce a level dividend stream of $5.20 a share. If the current stock price is $40.20, what is the market capitalization rate?
Further growth in free cash flow-What is Phoenixs P-E ratio : Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made at the beginning of 2016 are as follows: ($ millions) 2017 2018 2019 2020 2021 Net income 1.0 2.0 3.2 3.7 4.0 Investment 1.0 1.0 1.2 1...
State of alabama has legally earmarked : The state of Alabama has legally earmarked around 85 percent of its state budget.
The bureau of labor statistics consumer expenditure survey : The Bureau of Labor Statistics’ Consumer Expenditure Survey: 2007 gives the following data: Income Category Average Income Before Taxes ($) Alcoholic Beverage Expenditures ($) Tobacco Products Expenditures
About bringing a new simen johan exhibit to ruffsdale : The Center for Poignant Art (CPA) is thinking about bringing a new Simen Johan exhibit to Ruffsdale. It will cost the Center $30,000 to bring the exhibit to town, an additional $13,000 to install it, and $5,000 for an insurance policy. The manager of..

Reviews

Write a Review

Financial Management Questions & Answers

  Should the land be included in the analysis

Geico is considering expanding an existing plant on a piece of land it already owns. The land was purchased 15 years ago for $325,000, and its current market appraisal is $820,000. A capital budgeting analysis shows that the plant expansion has a net..

  Impact of sub cultural elements such income-social class

What is the impact of sub cultural elements such as income, social class, religion, ethnicity, gender, and age on consumer buying? How do these affect consumer shopping behavior? What sub cultural elements best influence online versus mall shopping p..

  What is the yield to maturity for bond

Revenue $3 million COGS 40% of revenue Operating Expenses $500,000. If their retained earning balance was $450,000 last year and $912,000 how much did they pay in dividends? What is the yield to maturity for a bond with the following attributes? 12 y..

  Financial decision-making techniques

Complete a project that helps you apply theoretical knowledge of financial planning to practical applications. It is a proven fact that learning by doing is more effective than reading theory.

  How many shares must the company sell and at what price

A company wants to raise $100 million on a new stock issue. According to their investment banker, a sale of new stock will require 8% under pricing and a 7% spread. Assuming the company’s stock price does not change from its current price of $100 per..

  What would the annual increase in the value of certificate

Suppose that in 2010, a $10 silver certificate from 1898 sold for $11,200. For this to have been true, what would the annual increase in the value of the certificate have been?

  About the adequacy of their debt coverage ratios

Explain why the volatile (i.e. instability) of a firms input and operating costs over time might be a critical factor in drawing conclusions about the adequacy of their debt coverage ratios

  What is the balance in the account now

Your grandparents opened an account for you when you were born, twenty years ago. They deposited $2,000 into the account at that time. If the account earned 4.5%, compounded annually, what is the balance in the account now (on your 20th birthday)?

  How he can consolidate data to output average-minimum

Michael is a Professor of Biology at DeVry University and has collected "30" largemouth bass from "4" separate lakes to get weight distributions, measure of girth, and length. Given the Professor's needs, summarize how he can consolidate this data to..

  Different divisions-its low-risk division accounts

The Diversified Growth Co. has three different divisions. Its low-risk division accounts for $5 million of its assets and has a beta of 0.8. Its middle-risk division accounts for $10 million of its assets and has a beta of 1.1, while its high-risk di..

  Graph the bond yield to maturity

Identify two possibly mispriced bond issues, one overpriced and one underpriced. and graph the bond yield to maturity (YTM) on the y-axis of an XY-scatter plot, with the bond to maturity in years on the x-axis.

  Break-even point-what is the incremental profit

Schweser Satellites Inc. produces satellite earth stations that sell for $95,000 each. The firm's fixed costs, F, are $2.5 million, 50 earth stations are produced and sold each year, profits total $600,000; and the firm's assets (all equity financed)..

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