What is the amount of annual dividends

Assignment Help Financial Management
Reference no: EM131010911

Stocks of Z-Cruise are currently selling for $30 per share. The price is expected to be $32 per share a year from now. You decide to buy a few shares of the stock and sell them one year from now. If your expected holding period return is 12%, what is the amount of annual dividends you need to receive on each share of the stock?

Reference no: EM131010911

Questions Cloud

Regular subscriber to the financial times : Suppose you are a regular subscriber to the Financial Times and are considering whether to renew your subscription for a single year or two years. If your cost of capital is 10%, purchasing a two-year subscription for $775 rather than a one-year subs..
Enough funds for retirement : Suppose you wish to retire 35years from today. You estimate, you need P100,000 per year once you retire, with the first retirement funds withdrawn one year from the day you retire. An estimation of 7% earning per year on your retirement funds is poss..
Total sources of funds are calculated : Total sources of funds are calculated as:
What is holding period return on the stocks : On January 1st, 2000, you purchased 20 shares of ABC stock at $15 per share. You received dividends of $0.75 at the end of 2000, $1.05 at the end of 2001; and $1.20 at the end of 2002. You sold all the ABC stocks at the end of 2002 for $18.5 per shar..
What is the amount of annual dividends : Stocks of Z-Cruise are currently selling for $30 per share. The price is expected to be $32 per share a year from now. You decide to buy a few shares of the stock and sell them one year from now. If your expected holding period return is 12%, what is..
Assume interest payments are semi-annual : Compute the price of a 3.8 percent coupon bond with 15 years left to maturity and a market interest rate of 6.8 percent. (Assume interest payments are semi-annual.) Is this a discount or premium bond? Need formula and step by step
What is the price of the bond now-what yield to maturity : Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 8.8%. Now, with 7 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has in..
Explain the difference between bull market and bear market : Explain the difference between a bull market and a bear market. Discuss the frequency with which returns as bad as those during 2007-2009 occur. How would you characterize the current state of the stock market?
What is the yield to maturity at a current market price : Yield to Maturity: Heymann company bond have 4 years left to maturity. Interest is paid annually, and the bonds have a $1000 par value and a coupon rate of 9%. what is the yield to maturity at a current market price of (1) $829 and (2) $1104?

Reviews

Write a Review

Financial Management Questions & Answers

  Difference between hedging-speculation and arbitrage

(A) Please define and explain the difference between hedging, speculation, and arbitrage. (B) Please define and explain the difference between Forward and Futures contracts.

  Point-of-view of a common shareholder

(a) In your own words, from the point-of-view of a common shareholder, how would you estimate a company’s fundamental or intrinsic value? (b) What are some of the reasons why a company’s fundamental value might significantly exceed its “book value”?

  Getting ready to produce a new line of gold clubs

McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $847,500, and $1,200,000 over the next three years. What is the payback period ..

  Data for use in developing the budgeted income statement

The budget director of Gold medal athletic co., with the assitance of the controller, treasurer, production manager and sales manager, has gathered the following data for use in developing the budgeted income statement for march 2016

  Long-term borrowing to meet working capital needs

Compare and contrast the advantages and disadvantages of short- and long-term borrowing to meet working capital needs.

  Different kinds of utility that marketers can provide

What are the 4 different kinds of utility that marketers can provide? Give an example (not from the book) of a product that delivers each type of utility.

  How many months will take dennis to pay off his credit card

(Non annual compounding using a calculator) Dennis Rodman has a $5,000 debt balance on his Visa card that charges 10. 7 percent compounded monthly. Dennis's current minimum monthly payment is 5 percent of his debt balance, which is $250.

  What are the common stockholders residual claims to earnings

Folic acid inc. has $20 million in earnings pays $2.75 million in interest to bondholders and $1.80 million in dividends to preferred stockholders. a) What are the common stockholders residual claims to earnings? b) What are the common stockholders l..

  What is the price of the bond now-what yield to maturity

Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 8.8%. Now, with 7 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has in..

  Considering investing in project with characterisitics

You’re considering investing in a project with the following characteristics: Compute the NPV of the project if the tax rate is 0% per year. Is the IRR in this case higher or lower than 20%?

  What is the portfolios beta

Bill Dukes has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta?

  For the sake of illustration

For the sake of illustration, consider a situation where RestLife holds a $120 MM face value position with an IR DV01 of 73,828.09 and SPRD DV01 of 95,908.09. What position in an IRS and a CDS should be held if the IR DV01 and SPRD DV01 of $10 MM not..

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