Calculate the expected dividend yield

Assignment Help Finance Basics

Reference no: EM13297153

You buy a share of The Ludwig Corporation stock for $19.90. You expect it to pay dividends of $1.07, $1.16, and $1.2576 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $31.81 at the end of 3 years. a.Calculate the growth rate in dividends. Round your answer to two decimal places. ? % b.Calculate the expected dividend yield. Round your answer to two decimal places. ? % c.Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return? Round your answer to two decimal places. ?

Reference no: EM13297153

Questions Cloud

Determine how much air is needed combust the water : Soil material is being assessed as a possible liner for a sanitary landfill. A soil core was collected and brought to the laboratory. A 10-cm tall section of soil has 2 cm of water continuously ponded on it. The area of the core surface is 78 cm^2..

Chart showing labor cost with tax deductions : Research on Guyana Graph showing Guyana’s growth rate over the last five years. Explanation of graph Graph showing Guyana’s growth rate over the last 5 years compared to those of other Caribbean countries

Explain constant pressure and constant volume : One mole of an ideal gas (Cv=3/2R) is heated at (a)constant pressure and (b) constant volume from 298Kto 353K. Calculate delta_S for both cases.

Find where will the image be located : A researcher uses a converging lens with focal length 310 mm to view a specimen. The lens is placed 130 cm from the specimen. Where will the image be located

Calculate the expected dividend yield : Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return? Round your answer to two ..

Explain the final total pressure of the mixture is 1 atm : One mole of N2, one mole of O2, and 0.5 mol of H2 are at 25 oC and 1 atm. The final total pressure of the mixture is 1 atm. Calculate delta_S on forming the mixture.

What is the fundamental frequency of its vibration : A string with a mass m = 5.00 g and a length L = 9.00 m has one end attached to a wall; the other end is draped over a small, what is the fundamental frequency of its vibration

Calculate the change in temperature of the air in the room : Incandescent light bulbs have been phased out in the US because they are very inefficient (i.e., they produce a very large amount of heat). A 10 W light-emitting diode lamp (LED) can produce about the same light output as incandescent light bulbs

What are the magnitudes of the points : An object rotates about a fixed axis, and the angular position of a reference line on the object is given by ? = 0.60e8t, what are the magnitudes of the point's

User Account

All Pages