What is the expected capital gains yield and dividend yield

Assignment Help Financial Management

Reference no: EM13878026

The next dividend payment by Wyatt, Inc., will be $3.15 per share. The dividends are anticipated to maintain a growth rate of 6.50 percent, forever. Assume the stock currently sells for $49.90 per share.

Requirement 1:

What is the dividend yield? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Dividend yield %

Requirement 2:

What is the expected capital gains yield? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Capital gains yield %

Reference no: EM13878026

Questions Cloud

Industry days sales outstanding : If the industry days sales outstanding is 65 days and a firm with sales of $1,034,550 has receivables of $268,700, how much in interest expense could the firm save if the receivables turn over as quickly as the industry average and the cost of carryi..

What is the capital gains yield : The Toy Chest pays an annual dividend of $4.80 per share and sells for $93.20 a share based on a market rate of return of 15 percent. What is the capital gains yield?

What is the net advantage of leasing : Sadik Industries must install $1 million of new machinery in its Texas plant. It can obtain a bank loan for 100% of the required amount. Alternatively, a Texas investment banking firm that represents a group of investors believes it can arrange for a..

Pristine urban-tech zither manufacturers of fine zithers : You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago for $1.48 million in anticipation of using it as a..

What is the expected capital gains yield and dividend yield : The next dividend payment by Wyatt, Inc., will be $3.15 per share. The dividends are anticipated to maintain a growth rate of 6.50 percent, forever. Assume the stock currently sells for $49.90 per share. What is the dividend yield? What is the expect..

What is the most profitable price point : You are hired by the health care provider Parma Group. Your boss says, identify the most profitable price point for a new drug. The facts utilized for proper analysis are as follows: 2 million people are using the drug, a survey says for every yearly..

Planning bond issue with an escalating coupon rate : Demand corporation is planning a bond issue with an escalating coupon rate. the annual coupon rate will be 4 percent for the first 3 years, 5 percent for the subsequent 3 years, and 6 percent for the final 3 years. if bonds of this risk are yielding ..

What must be the growth rate they expect of the firm : Eastern Electric currently pays a dividend of about $1.65 per share and sells for $30 a share. If investors' required rate of return is 10%, what must be the growth rate they expect of the firm?

Tax effects resulting from the cash outflows : Glop, Inc., is considering a machine which will cost $50,000 at Time 0 and which can be sold after 3 years for $10,000. $12,000 must be invested at Time 0 in inventories and receivables (this is part of the initial investment, but there are no tax ef..

User Account

All Pages