Calculate the growth rate in dividends

Reference no: EM1359683

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 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 the stock's expected total rate of return?

Reference no: EM1359683

Questions Cloud

What is the velocity of the gold pack after the collision : What is the velocity of the gold pack after the collision. what least average speed must it have in the second half of the event in order to qualify.

Calculate the the initial cash flow amount : Marshall's & Corporation bought a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised at $810,000.

Compute the value of ra in terms of r1 and r2 : Compute the value of Ra in terms of R1 and R2. how much energy must be added to a 2-kilogram pile of it to increase its temperature from 40*c to 50*c.

Explain how do we employ more adult mentors : Explain How do we employ more adult mentors to serve more youth and provide them a prospect at a relationship with a positive male role model

Calculate the growth rate in dividends : Suppose you purchase 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.

Explain state a problem in your field of interest : Explain State a problem in your field of interest and list some variables/topics that may be investigated to solve this problem

Explain what are the advantages of outsourcing : Explain What are the advantages and disadvantages of outsourcing and Include and describe a product or service of a specific low labor-cost country as an example

Calculate the investment amount : Dixon Shuttleworth has been offered the choice of three retirement-planning investments. The first investment offers a 5% return for the 1st five years, a 10% return for the next five years, and a 20% return thereafter.

Explain there is a contract and a negotiable instrument : Explain There is a contract and a negotiable instrument and There is neither a contract nor a negotiable instrument and It is a negotiable instrument but not a contract.

User Account

All Pages