Calculate the company capital gains yield

Assignment Help Other Subject
Reference no: EM133308214

Question

ABT is expected to pay a dividend of $8.15 one year from now. Compute the expected value of ABT's stock as of today, as well as the dividend yield, which is computed as the expected dividend per share divided by the stock price today. Assume the annual dividend will grow 5% in perpetuity and the market requires a 15% expected return.

Next, calculate the company's capital gains yield, which is computed as the expected gain per share (change in price) divided by the stock price you calculated.

Reference no: EM133308214

Questions Cloud

Auditor evaluates the results of ADA : Which of the following is not a consideration when the auditor evaluates the results of an ADA? How many notable items were found?
Bussing plan : How much can they go up and the solution in a) still remains optimal? What is the bussing plan if they all go up by 10%?
Tuckman stages of group development : Identify and describe Tuckman's Stages of Group Development. justify one possible feeling, behaviour, or threat that could be associated with EACH stage.
Percentage changes in financial statement numbers : Is there a way to distinguish between absolute changes and percentage changes in the financial statement numbers?
Calculate the company capital gains yield : calculate the company's capital gains yield, which is computed as the expected gain per share (change in price) divided by the stock price you calculated.
What is role of net working capital in projects : What is the role of net working capital in projects? How does net working capital affect a project's cash flows?
Compute the share price : Sennheiser's preferred stockholders require an annual return of 8.00%, compounded quarterly. Compute the share price.
Equilibrium price and quantity for energy drinks : Find the equilibrium price and quantity for energy drinks and draw the graph for the market.
Doug purchased non-registered term-certain annuity : At age 75, Doug Purchased a non-registered term-certain annuity with a 10-year guarantee period.

Reviews

Write a Review

Other Subject Questions & Answers

  Write a brief history of the sex offender notification

Thread: Provide a brief history of the sex offender notification/registration in the United States and explain the specific sex offender registration laws.

  What are the benefits of cloud computing

What are the benefits of cloud computing and What are the challenges facing cloud computing - What is the difference between cloud computing

  Discuss the pathology and pathophysiological consequences

Discuss the pathology and pathophysiological consequences of alcohol abuse on the central nervous system

  How do law enforcement organizations regulate the use

How do law enforcement organizations regulate the use of social media? Research the best practices related to the regulation of police officers.

  Explain your knowledge and position on recent trends in us

Describe and explain your knowledge and position on recent trends in the U.S. about marijuana in modern society. Compare it to what you know about alcohol and Prohibition

  Identify the important facts in the case study

The format of each case study critique should be as follows: Identify the important facts in the case study. What decision(s) were made in the case study?

  Identify key red flags that heighten professional skepticism

Read the specific facts and circumstances of the case study, identify the key red flags that heighten professional skepticism, and provide your own evaluation f

  How personal conduct can violate hipaa

Include discussion of how personal conduct can violate HIPAA or be considered unethical or unprofessional. Provide an example of each to support your answer.

  Explain some of the favorable and unfavorable noneconomic

describe some of the favorable and unfavorable noneconomic effects of tourism. describe a situation in which you

  Define all the various disabilities under idea

Define all the various disabilities under IDEA

  Problems related to ethics 2

Discuss what is meant by the term abandonment and describe ways that this claim can be avoided. What is a subpoena and who can accept it?

  Were any of the examples surprising

Respond to the following: Were any of the examples surprising? Did they add to your enjoyment of the film, if it was a film you have previously viewed

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