What is this stocks expected total rate of return

Assignment Help Business Management
Reference no: EM131375852

You buy a share of The Ludwig Corporation stock for $21.40. You expect it to pay dividends of $1.07, $1.1449, and $1.2250 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $26.22 at the end of 3 years.

a. Calculate the growth rate in dividends.

b. Calculate the expected dividend yield.

c. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to get the expected total rate of return. What is this stock's expected total rate of return?

Reference no: EM131375852

Questions Cloud

Relevancy of major organizational theories : Write a report analyzing the relevance of all four major organizational theories in this day and age, and evaluate the communication implication of each theory. Based on the analysis, examine which school of organizational thought is best suited t..
Advantages and disadvantages of flooded coolers : Why are low-pressure refrigerants well suited for centrifugal compressor chillers?
Explain each of guiding principles of restorative justice : Explain each of the guiding principles of restorative justice. Sykes pointed to what three factors of special importance that sought to explain the rise of criminological conflict theory. Using at least 250 words, explain these factors.
What is the function of a purge recovery unit : What precaution should be taken for coolers that are located outside?
What is this stocks expected total rate of return : Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to get the expected total rate of return. What is this stock's expected total rate of return?
What do you recommend microsoft do regarding bing : What do you recommend Microsoft do regarding Bing? Can Bing catch up to Google in search? How did Yahoo lose its lead in search to Google?
What is gordon model value for levines stock : Using data from part a, what is the Gordon (constant growth) model value for Levine's stock if the required rate of return is 15 percent and the expected growth rate is (1) 15 percent or (2) 20 percent? Are these reasonable results? Explain.
Explain the operation of lead and lag compressors : Why is a cooler shell and suction line insulated on a unit that is located indoors?
Discuss the trial practices and legal issues based on civil : From the scenario, analyze the general points between initiating civil procedures, the prevalent practices of these procedures within health care litigation solutions, and the influence of corporate structure on resolutions and subsequent legal pr..

Reviews

Write a Review

Business Management Questions & Answers

  Determining the autocratic decision style

1. An autocratic decision is one in which the manager makes the decision. Name a workforce problem/dilemma where an autocratic decision style would be the most appropriate decision style.

  Expressions represents the firm atc

Consider the following cost function:TC= 200 + 20Q2. Which of the following expressions represents the firm's ATC?

  Temporary increase in government purchases

Economists often argue that a temporary increase in government purchases-say, for military purposes-will crowd out private investment. Use the saving-investment diagram to illustrate this point,

  Series-parallel resistive circuits

Discuss how you can identify which resistances are in series and which ones are in parallel in a series-parallel circuit. How might this affect how you measure current and voltages in the circuit with a digital multimeter?

  How quality can be measured in an environment

Analyze and describe what impact this attempt to expand the product line will have on quality (answer both in terms of the company's existing product line, which is passenger tires, and its new product line, which is windshield wipers).

  What individual characteristics and qualifications

1.What individual characteristics and qualifications should the company consider when choosing managerial candidates for the foreign assignment?

  Every new change is resisted by someone

Explain what are several barriers that would prevent the communication of a strategy down through the various levels of an organization?

  Personal success only in terms of financial gain

Employees today are less likely to define their personal success only in terms of financial gain. Many more workers claim that achieving a good work-life blance is a higher priority than "moving up the corporate ladder."

  Before installation of the linux os

Why do you suppose so much planning needs to occur before installation of the Linux OS?

  Classify the most urgent issue necessary to penetrate

Marketing is really strategic idea of "connectedness" with consumers. From the perspective of Boeing, classify also discuss explain how Boeing connects with its consumers select from either the marketing concept or the selling concept. Be detailed..

  Rewards and compensation in recruitment strategyi need to

rewards and compensation in recruitment strategyi need to develop a draft of the rewards and compensation portion of

  Critically analyze dan friend advice

Dan Miller is a dentist who has a successful practice in a medium-sized city. Recently business suffered as a result of patients not paying their dues on time. Critically analyze Dan's friend's advice. Point out the relevant aspects as well as any..

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