Dividend amount is expected to grow at an annual rate

Assignment Help Financial Management

Reference no: EM131062812

A stock is expected to pay a dividend next year of $2.10. The dividend amount is expected to grow at an annual rate of 5.5% indefinitely. Assuming a required return on the stock of 8.3% in the future, the dividend yield on the stock is ______%. Do not round any intermediate work, but round your final answer to 2 decimal places

Reference no: EM131062812

Questions Cloud

What are the relevant cash flows : Healthy Potions, Inc., a pharmaceutical company, bought a machine at a cost of $2 million five years ago that produces pain-reliever medicine. The machine has been depreciated over the past five years, and the current book value is $700,000. The comp..

Assume the rate of interest stays : Ashley is planning to attend college when she graduates from high school 7 years from now. She anticipates that she will need $100,000 at the beginning of each college year to pay for tuition and fees and have some spending money. Will there be enoug..

What is your portfolio return : Year-to-date, Oracle had earned a −1.53 percent return. During the same time period, Valero Energy earned 8.07 percent and McDonald's earned 0.70 percent. If you have a portfolio made up of 25 percent Oracle, 30 percent Valero Energy, and 45 percent ..

What is the present value of the bond : A bond with a 9% coupon rate pays interest semiannually. Par value is $1,000. The bond has 4 years to maturity. The investor's required rate of return is 12%. What is the present value of the bond? can you not do a chart and actually show how to do ..

Dividend amount is expected to grow at an annual rate : A stock is expected to pay a dividend next year of $2.10. The dividend amount is expected to grow at an annual rate of 5.5% indefinitely. Assuming a required return on the stock of 8.3% in the future, the dividend yield on the stock is.

What is the yield to maturity on a share of hospitality : What is the yield to maturity on a share of Hospitality Properties Trust B $2.22 preferred stock if an investor buys the stock at $35. Assume dividends are paid annually.

Investor holdings both before and after the dividend : Cyberco Corporation has 5 million shares of stock outstanding. Cyberco's after-tax profits are $15 million and the corporation's stock is selling at a price-earnings multiple of 10, for a stock price of $30 per share. Use the price earnings multiple ..

Value of your investment in stock before the split : Dryden, Corp. has 500,000 shares of common stock outstanding, a P/E ratio of 11, and $900,000 earnings available for common stockholders. The board of directors has just voted a 5:2 stock split. If you had 100 shares of stock before the split, how ma..

Bonds the next coupon payment is due in exactly six months : Your company currently has $1,000 par, 6.5% coupon bonds with 10 years to maturity and a price of $1,068. If you want to issue new 10 year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds the next coupon payment is..

User Account

All Pages