What is the dividend yield and capital gains yield

Assignment Help Financial Management
Reference no: EM13911121

Calculate the required return for a stock which expects to pay a dividend of $1.50 this year. The dividends are growing at 2%, and the stock currently trades at $34.50 per share. What is the dividend yield and capital gains yield?

Reference no: EM13911121

Questions Cloud

What basic transaction processing activities are performed : What basic transaction processing activities are performed by all transaction processing systems?
The two main surgical units and their related data follow : Health Coop is an outpatient surgical clinic that wants to better understand its costs. It decides to prepare an activity based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery.
What is expected return of a share of preferred stock : What is expected return of a share of preferred stock if the current price is $50 and it pays an annual dividend of $5?
What is the current expected dividend yield : Assuming we are in equilibrium conditions, what is the current expected dividend yield? What is the expected stock price one year from now? What is the current expected capital gains yield?
What is the dividend yield and capital gains yield : Calculate the required return for a stock which expects to pay a dividend of $1.50 this year. The dividends are growing at 2%, and the stock currently trades at $34.50 per share. What is the dividend yield and capital gains yield?
Equipment would require an increase in net working capital : The president of the company you work for has asked you to evaluate tehe proposed acquisition of a new chromatograph for th firm's R&D department. The equipments basic price is $70,000, and it would cost another $15,000 to modify it for special use b..
Identify and discuss some of the issues that are common : Identify and discuss some of the issues that are common to the planning, building, and operation of an ERP, CRM, or PLM enterprise system whether for an SME or a large multinational organization.
Horizon value of constant growth portion of firms dividends : Orwell Building Supply just paid a $2 dividend. The dividends are expected to grow at 30% for the first year, 25% for the second year, and then 15% for the third year. After which, the long-run rate is expected to be 6%. What is the expected dividend..
Bond from the previous example assume that this bond : (You have just purchased an outstanding 15-year bond with a par value of $1,000 for $1,145.68. It's annual coupon payment is $75.) For the same bond from the previous example assume that this bond is callable in 7 years a a price of $1,075. What is t..

Reviews

Write a Review

Financial Management Questions & Answers

  In the major world capital markets

In the major world capital markets, the barriers to the free flow of capital include all of the following except. low transaction costs b. taxation policies c. foreign exchange d. risks legal restrictions.

  Combining uncorrelated assets

Combining uncorrelated assets will. In the real world, most of the assets available to investors. Here are some quotes of the USD: CHF dollar spot exchange rate given simultaneously on the phone, if you were trading USD for CHF, which quote is the be..

  Two bookstores are competing for customers

Two bookstores are competing for customers. Both bookstores can decide to offer discounts to attract more customers. Bookstore-A has a 30% probability of offering a discount. The probability that Bookstore-B will offer a discount is unknown, and is r..

  Using the dividend discount model

Yippie is a recent startup and is currently not paying any dividends. The earnings in 2006 are expected to be $4 a share and analysts predict that Yippie’s earnings will grow at an annual rate of 30% for the next three years (until 2009). What is the..

  Acc5502 accounting and financial management

ACC5502 Accounting and Financial Management,  Outline the key duties of directors. Outline the arguments for the directors of Forge Group Ltd that they carried out their duties.

  Average tax rate paid for a firm with taxable income

What is the (1) marginal and (2) average tax rate paid for a firm with taxable income of a). $25,000? b). $85,000? c). $250,000? d). $12 million? e). $200 million?

  What is the rate of return received by the investor

If an investor purchases a bond 10 years ago when the bond was first issued and sold the bond today, what is the rate of return received by the investor? When originally issued, the bonds were sold for $960 per bond; today their current market price ..

  How much will you receive on the next coupon date

You purchase 3,000 bonds with a par value of $1,000 for $980 each. The bonds have a coupon rate of 7.2 percent paid semi annually, and mature in 10 years. How much will you receive on the next coupon date? How much will you receive when the bonds mat..

  Explain why lenders offer subprime loans

Subprime loans have higher loss rates than many other types of loans. Explain why lenders offer subprime loans. Describe the characteristics of the typical borrower in a subprime consumer loan.

  Annual discount interest rate

Find the present value of $7,000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years.

  Recoup the original additional investment in working capital

Targaryen Aeronautics is exploring the possibility of making a significant purchase of a new alternative aircraft technology to add to their current fleet - a dragon. The purchase price of the dragon is expected to be $4,000,000 with additional shipp..

  Why would an analyst use the modified du pont system to

Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain

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