Annual dividend-what is the capital gains yield

Assignment Help Financial Management
Reference no: EM13882054

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?

9.85 percent

7.35 percent

10.00 percent

7.78 percent

9.23 percent

Reference no: EM13882054

Questions Cloud

Expansion project-initial fixed asset investment : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.79 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,110,000 in annual sale..
Dividend payment-what is the expected capital gains yield : The next dividend payment by Wyatt, Inc., will be $2.95 per share. The dividends are anticipated to maintain a growth rate of 5.50 percent, forever. Assume the stock currently sells for $49.50 per share. What is the expected capital gains yield? What..
Ideas of article - managing your mission-critical knowledge : Article- Managing Your Mission-Critical Knowledge by Martin Ihrig and Ian MacMillan. Use the information to point the main ideas of the article and Use simple language
Liquid mixture of ethyl alcohol : A beaker filled with an equimolar liquid mixture of ethyl alcohol and ethyl acetate evaporates at O°C into still air at 101 kPa (1 atm) total pressure. Assuming Raoult's law applies, what will be the composition of the liquid remaining when half t..
Annual dividend-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?
Compute the company''s return on investment : Compute the company's return on investment
They feel the business will be worthless : Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,000, $11,000, and $17,200 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has deter..
Which machine if any should the company select at a marr : An engineer performed the following analysis to select the best machine, all of which have a 10-year life. Which machine, if any, should the company select at a MARR of 22% per year?
Calculate the sustainable growth rate of the company : Johnson Products earned $3.10 per share last year and it paid out $.75 dividend. The company’s ROE is 16%. a) Calculate the dividend payout ratio; b) Calculate the sustainable growth rate of the company.

Reviews

Write a Review

Financial Management Questions & Answers

  Receives the limited liability of a corporation

A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a:

  Source of systematic risk

Which of the following is not a source of systematic risk?

  Capital structure will the firm run out of retained earnings

Medical Research Corporation is expanding its research and production capacity to introduce a new line of products. Current plans call for the expenditure of $100 million on four projects of equal size ($25 million each), but different returns. At wh..

  Annual investments in a fund

Suppose you make 30 annual investments in a fund that pays 4% compounded annually. If your first deposit is $9,000 and each successive deposit is 4% greater than the preceding deposit, how much will be in the fund immediately after the 30th deposit?

  Shares of common stock outstanding

At December 31, 2014, Sager Co. had 1,200,000 shares of common stock outstanding. In addition, Sager had 450,000 shares of preferred stock which were convertible into 750,000 shares of common stock. During 2015, Sager paid $900,000 cash dividends on ..

  How much can you withdraw each year in your retirement

You are planning your retirement in 10 years. You currently have $176,000 in a bond account and $616,000 in a stock account. You plan to add $6,400 per year at the end of each of the next 10 years to your bond account. How much can you withdraw each ..

  What is its self supporting growth rate

Maggie’s Muffins, Inc., generated $5,000,000 in sales during 2013, and its year-end total assets were $2,500,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

  What is the duration if the yield to maturity

Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.2%. What is the duration if the yield to maturity is 10.2%?

  Effective interest rate per payment period for interest rate

Find the effective interest rate per payment period for an interest rate of 6% compounded monthly for each of the given payment schedule.

  Calculate the price with constant dividend growth model

Sisters Corp expects to earn $7 per share next year. The firm’s ROE is 14% and its plowback ratio is 60%. If the firm’s market capitalization rate is 10%. Calculate the price with the constant dividend growth model. What is the present value of its g..

  What is its taxable income

Bella, Inc. has net income of $3,500,000. The company‘s depreciation expense is $650,000, its interest expense is $200,000, and its income tax rate is 40%. What is its taxable income?

  About the save money

You are going to save money for your son’s education. You have decided to place $2,539 every half year at the end of the period into a saving account earning 8.14 percent per year, compounded semi-annually for the next 9 years. How much money will be..

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