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

Reviews

Write a Review

 

Financial Management Questions & Answers

  Share price using the constant growth model

Over the past 16 years, Walmart's dividends have grown from $0.27/yr to $1.99/yr. Assuming the same growth rate and a market discount rate of 16%, compute the present value of Walmart's share price using the constant growth model.

  Profitable to expand her organization production volume

If a manager is trying to determine whether it would be profitable to expand her organization’s production volume, should she compare the marginal revenues from the expansion to the organization’s marginal costs or average costs? And why?

  Considering major expansion of its product line

Fijisawa, Inc., is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion. The initial outlay associated with the expansion would be $2,010,000, and the project would genera..

  The stock price using the p-e ratio valuation method

Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions: the investors required rate of return 13%. the stock price using the P/E ratio valuation method is $. The stock price using the dividen..

  About the compact fluorescent lamps

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $0.38 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs $..

  What is the company new price-to-earnings ratio

what is the company’s new price-to-earnings ratio? Could you predict the direction the P/E ratio would move without performing this calculation?

  What net return did you earn on your ei shares investment

Suppose you purchase shares of Engel, Inc (EI) which recently executed an IPO at the post-offering market price of $32 per share and you hold the shares for one year. You the sell you EI shares for $35 per share. EI does not pay dividends and you not..

  Determine the fair present value of bond

Determine the fair present value of the bond if market conditions justify a 10.5 percent, compounded quarterly, required rate of return.

  Franklin mints management can expect on this project

Management of Franklin Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $273,491. They project that the cash flows from this investment will be $114,220 for the next seven years. If the appropriate discoun..

  Describes the service program for helping customers keep

describes the service program for helping customers keep

  What is the expected net income

Given its tax rate of 40%, what is the expected net income for ABC this year?

  European vanilla option typically have negative delta

Why does a short call position in a European vanilla option typically have negative delta (?)?

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