What is the stocks capital gain yield

Assignment Help Financial Management
Reference no: EM13885270

A company has just paid a dividend of 4.19$. Its discount rate is 8.3%, and the expected perpetual growth rate is 3.8%. What is the stock's Capital Gain Yield?

Reference no: EM13885270

Questions Cloud

How much is the max exclusion from taxation on the gain : Jane has lived in her home 6 years got married last month gave her husband one half interest in home. if they sell the home next month how much is the max exclusion from taxation on the gain.
Turnbulls estimated growth rate : Suppose Turnbull is currently distributing 65.00% if its earnings in the form of cash dividends. It has also historically generated an average return on equity (ROE) of 18%. Turnbull's Estimated growth rate is ......
What is the floation-adjusted cost of new common stock : Wooten Co. has a current stock price of $33.35 and is expected to pay a dividend of $2.03 at the end of next year. the company's growth rate is expected to remain constant at 9.4%. If floatation cost represent 5.% of funds raised, what is the floatio..
Considering new project that will require initial investment : Kuhn Company is considering a new project that will require an initial investment of $4 million. It has a target capital structure of 58% debt, 6% preferred stock and 36% common equity. Flotation costs will represent 8% of the funds raised by issuing..
What is the stocks capital gain yield : A company has just paid a dividend of 4.19$. Its discount rate is 8.3%, and the expected perpetual growth rate is 3.8%. What is the stock's Capital Gain Yield?
What is the expected return on portfolio-capital allocation : Greta, an elderly investor, has a degree of risk aversion of A = 4 when applied to return on wealth over a 3-year horizon. She is pondering two portfolios, the S&P 500 and a hedge fund, as well as a number of 3-year strategies. What is the expected r..
Decreased even though sales increased : Between December 31, 2016 and December 31, 2017, ROE at Bobcat Industries decreased even though sales increased. Using the DuPont Identity, explain what else could have happened to cause this.
What is the value of the stock if required rate of return : Bio-Genetic Incorporated just paid a dividend of $5. The dividend is expected to grow at a 30% rate for the next 3 years and at a 10% rate thereafter. What is the value of the stock if the required rate of return is 20%? (Please explain the calculati..
After any necessary reinvestment in the business : Sam wants to start a small commercial bakery to supply gourmet deserts to local restaurants. He believes that with his product line and his connections in the restaurant business, he can grow the business over the next five years into a profitable ni..

Reviews

Write a Review

Financial Management Questions & Answers

  Environmental costs increase

Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate o..

  What amount will the following investment accumulate

To what amount will the following investment accumulate? $26,580, invested today for 3 years at 18.77 percent, compounded monthly.

  The beta of firm is more likely to be high

The beta of a firm is more likely to be high under what two conditions?

  Correct concerning this projects discounted payback

A project has a payback period of 5 years and the firm employs a 10% cost of capital. Which of the following statements is correct concerning this project's discounted payback?

  Task is to analyze two mutually exclusive projects

Your task is to analyze two mutually exclusive projects: Using the payback criterion, which investment should you chose? Why? Using the discounted payback criterion, which investment should you chose? Why? Using the NPV criterion, which investment sh..

  The firm manufactures a global positioning system gps that

the firm manufactures a global positioning system gps that sells for 2000 with cost of goods sold hardware 30 and

  How the firms management has ran the firm

Suppose that has a market value per share of $123, has net income of $516 million, and 20 million shares outstanding. Additionally, the firm had a common equity price of $100 as of the flotation date. Discuss what your answers to part a and b may den..

  Nominal and effective costs of trade credit

Grunewald Industries sells on terms of 3/10, net 50. Gross sales last year were $4,972,000, and accounts receivable averaged $488,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of ..

  What must the coupon rate be on the bonds

Osbourne Corporation has bonds on the market with 16.5 years to maturity, a YTM of 10.6 percent, and a current price of $942. The bonds make semi-annual payments. What must the coupon rate be on the bonds?

  What is the dollar-weighted duration of the bank''s liability

What is the dollar-weighted duration of the bank's liability portfolio if the bank wants to maintain zero leverage - adjusted duration gap?

  What is the size of each quarterly deposit

The parents of a girl are planning to finance her college education. They want to make 48 quarterly deposits (equal amounts) in an account, which pays interest at 9% compounded monthly. What is the size of each quarterly deposit?

  What is the leverage capital ratio

What is the leverage capital ratio and why do regulators specify a minimum for it?

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