Find dividend yield and equity cost of capital

Reference no: EM1353108

Can you help me get started on these questions. I am having trouble understanding the concepts.

Questions:

1. Krell industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's dividend yield and equity cost of capital?

2. Dorpac Corporation has a dividend yield of 1.5%. Dorpac's equity cost of capital is 8%, and its dividends are expected to grow at a constant rate.
a. What Is the expected growth rate of Dorpac's dividends?
b. What is the expected growth rate of Dorpac's share price?

Reference no: EM1353108

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