What is required before-tax rate of return on siena''s stock

Reference no: EM131409518

mavia and siena companies are operating under the same business risk but follow different dividend policies. maive reinvests all its earnings and thus pays no dividends but siena pays dividends with an expected 8% dividend yield. mavie's earnings and stock price are expected to grow 20% per year. the income tax rate is 35% but the capital gains are tax free. on the stocks of the two companies, the expected after-tax returns are equal. what is the required before-tax rate of return on siena's stock?

Reference no: EM131409518

Questions Cloud

Discuss the legal issues raised by this fact pattern : Discuss the legal issues raised by this fact pattern. Specifically, focus on any trademark infringement claim that the Cleveland Indians may have against David and the school. Also, explore any defenses that the school and David may raise in their..

What are we planning in future with virtual reality : You should include past history of Virtual reality technology. When and how it is invented? Who invented?Current state of Virtual Reality, where are we now. Are there anything that we invented with Virtual reality in military, game, business and ar..

Briefly describe the supply chain or warehouse : Briefly describe the supply chain or warehouse and then carry out paretoanalysi on the inventory holding and present the results.

What would be the form of a fifth order polynomial : What would be the form of a fifth-order polynomial? Would such a polynomial model tend to be practical for use with business data?

What is required before-tax rate of return on siena''s stock : what is the required before-tax rate of return on siena's stock?

What factors contributed to linking these stakeholders : What factors contributed to linking these stakeholders with the city of Kelsey through information technology?What factors are taken into consideration when determining needs for software?What are the benefits and risks of implementing information te..

Discuss the importance of occupational socialization : Discuss the importance of occupational socialization in Criminal Justice Organizations

What would be signs of partial regression coefficients : If a second-order polynomial model were fitted to the scatterplot of the data, what would be the signs of the partial regression coefficients in the model?

What is the total pressure in the flask : A 1.20g sample of dry ice (CO2) is added to a 755 mL flask containing nitrogen gas at a temperature of 25 degrees celsius and a pressure of 725 mmHg. The dry ice sublimes and the mixture returns to 25.0 degrees celsius. What is the total pressure ..

User Account

All Pages