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Calculation of expected dividend yield and Capital Gain.
A financial analyst has been following Fast Start Inc. a new high-growth company. She estimates that the current risk-free rate is 6.25 percent, the market risk premium is 5 percent, and that Fast Start's beta is 1.75. The current earnings per share (EPS0) are $2.50. The company has a 40 percent payout ratio. The analyst estimates that the company's dividend will grow at a rate of 25 percent this year, 20 percent next year, and 15 percent be following year. After three years, the dividend is expected to grow at a constant rate of 7 percent a year. The company is expected to maintain its current payout ratio. The analyst believes that the stock is fairly priced. What is the current price of the stock?
a) Find the expected dividend yield and capital gain yield once Fast Start Inc.'s period of supernormal growth ends.
b) At what interest to investors is the changing relationship between dividend yield and capital gain yield over time?
the fact that she is providing no collateral, the bank is going to charge her a fee of 2.0% of her loan amount as well as take out the interest upfront. The bank is offering her 16% APR for six months.
Lear, Corporation, has $800,000 in current assets, $350,000 of which are permanent current assets. In addition, the firm has $600,000 invested in fixed assets.
Bonds outstanding that pay a 5% semiannual coupon, have a 5.5% yield-to-maturity, and a face value of $1,000. The current rate of inflation is 4%. What is the real rate of return on these bonds?
What changes have occurred in the human service sector that have made government and private contributors more concerned with organizations' audits and audit procedures
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1.What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns.
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Phoenix Corporation common stock is at present selling for $20 per share. Security analysts at Smith Blarney have assigned following probability distribution to the value of Phoenix stock one year from now;
Describe Capital budgeting involves calculation of modified internal rate of return
Five brief articles to reference are found on the "Headlines" page of the menu for GE on YahooFinance. These articles were posted on Thursday, April 21, 2011 and Friday, April 22, 2011. Discuss and explain the process of capital budgeting.
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