Determining expected dividend per share

Assignment Help Basic Statistics

Reference no: EM1313977

1) Harrison Clothiers' stock presently sells for $20 a share. It now paid the dividend of $1.00 a share (that is, D_o=$1.00). Dividend is expected to grow at the constant rate of 6% a year. What stock price is expected 1 year from now? What is the required rate of return?

2) Preferred stock returns Bruner Aeronautics has perpetual preferred stock outstanding with the par value of= $100. Stock pays the quarterly dividend of $2, and its present price is $80.

a) Determine its nominal annual rate of return?

b) Determine its effective annual rate of return?

3) Portfolio required return Assume you are money manager of a $4 million investment fund. Fund consists of 4 stocks with following investments and betas:

Stock	Investment	Beta
A	400000	1.5
B	600000	-0.5
C	1000000	1.25
D	2000000	0.75

If market's required rate of return is 14% and risk-free rate is 6%, determine the fund's required rate of return?

4) DPS Calculation Warr Corporation now paid the dividend of $1.50 a share (that is, D_o = $1.50). Dividend is expected to grow 7% a year for next 3 years and then at 5% a year after that. Determine the expected dividend per share for each of the next five years?

Reference no: EM1313977

Questions Cloud

Determine real rate of interest : Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.

Economic ordering quantity computation : Economic ordering quantity computation and calculate the EOQ/ELS for the following two cases

Linear optimization spreadsheet model : What is the optimal strategy for producing 500 tons of newsprint pulp, 600 tons of packaging pulp, and 300 tons of print stock quality pulp at minimum cost?

Questions based on business accounts : Multiple choice questions based on business accounts and A corporation and its' owners are distinct entities

Determining expected dividend per share : Dividend is expected to grow 7% a year for next 3 years and then at 5% a year after that. Determine the expected dividend per share for each of the next five years?

Select a usa from the index also bring in additional source : Select a USA from the Index also bring in additional source material to Explicate its ranking also Explain how it has changed over the last 5-10 years.

Gdp forecast and inflation : If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you? What should you be asking about the forecast?

Calculate the present value for the data furnished : Calculate the present value for the data furnished and a security that will begin making payments when you retire in 20 of $20,000

How will the following accounts be impacted : The corporation, Joe's Discount Furniture, recorded sales for the month of May, 2001 amounting to $200,000. Sixty percent(60%) of these sales were on account. As a result of this transaction, how will the following accounts be impacted?

User Account

All Pages