What is expected capital gains yield

Assignment Help Financial Management
Reference no: EM132014668

Next dividend payment by Dizzle, Inc., will be $2.95 per share. The dividends are anticipated to maintain a growth rate of 5.5 percent, forever. Assume the stock currently sells for $49.50 per share.

What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Dividend yield             %

What is the expected capital gains yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Capital gains yield             %

Reference no: EM132014668

Questions Cloud

Working capital can be recovered at the end of the project : The net working capital can be recovered at the end of the project. Calculate the NPV of the project using 12 percent discount rate.
Holding-period return for one-year investment period : Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 7% by the end of the year.
How much of each bond will you hold in your portfolio : How much of each bond will you hold in your portfolio?
Calculate upfront charges needed to achieve return : Calculate the upfront charges needed to achieve a return of 9.5%. Also, assume that the loan term is 25 years.
What is expected capital gains yield : What is the dividend yield? What is the expected capital gains yield?
What should be the result of such an action : Due to threats by the president to set import quotas, What should be the result of such an action?
Annualized interest rate in financial decisions : What is the correct way to annualized an interest rate in financial decisions? Is it possible for financial instruments to have negative betas?
What is profit of strategy : which has a slope of negative 2 prior to the kink point and positive 1 after the kink point. What is profit of strategy if the stock price is 40 at expiration?
What is capital after-tax wacc : what is Capital’s after-tax WACC? Assume that the firm’s marginal tax rate is 40 percent.

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the unlevered free cash flows of new project

Prepare a financial statement to determine the unlevered free cash flows of new project. What is your analysis and make recommendation regarding new business?

  Discounted payback period of the proposed investment

Compute the? IRR, simple payback? period, and discounted payback period of the proposed investment.

  Present value of the right to receive four equal payments

What is the present value of the right to receive four equal payments (annuity due) of $1,000 per period, discounted at a rate of 10 percent per period? Which of the following statements about stock trading is correct?

  Global sales are generally dollar denominated

Apple, whose global sales are generally dollar denominated, finds it has excess cash of $175,000,000,000, which it can invest for up to three years. Assume that the annual interest amount is reinvested, i.e. compounds, at the same annual interest rat..

  Accounts does not necessarily change when sales increase

Which of the following accounts does not necessarily change when sales increase?”

  What is the tax effect of selling the old machine

Your company is considering the replacement of an old delivery van with a new one that is more efficient. The old van cost $40,000 when it was purchased 5 years ago. The old van is being depreciated using the simplified straight-line method over a us..

  What will be the number of shares outstanding

The company has decided to repurchase $183,556 worth of shares. After the repurchase, what will be the number of shares outstanding?

  What is the maximum upside and downside

What is the maximum upside (gain) and downside (loss)

  Outstanding bond-what is the yield to maturity

It is now January 1, 2016, and you are considering the purchase of an outstanding bond that was issued on January 1, 2014. It has a 9.5% annual coupon and had a 20-year original maturity. What is the yield to maturity? If you bought this bond, which ..

  Find the resale value of the equipment

Naperville Corporation plans to buy a piece of construction equipment for $225,000 and depreciate it fully over 5 years using straight-line method of depreciation. However, it plans to use it for 8 years and then sell it for an unknown amount. The eq..

  Measure the cost of the common stock

When measuring the cost of capital, many companies measure the cost of the common stock in the company. However, does common stock have a cost when there is no obligation to pay the stockholders except upon liquidation of the company?

  How many additional dollars of interest

How many additional dollars of interest would you earn over 10 years if you moved the money to an account earning 6.4%?

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