Maintain constant growth rate in its dividends

Assignment Help Financial Management

Reference no: EM13882268

Suppose you know that a company’s stock currently sells for $51 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

Reference no: EM13882268

Questions Cloud

What is the delivered price of the living room set : Levin Furniture buys a living room set with a $4,700 list price and a 50% trade discount. Freight (FOB shipping point) of $45 is not part of the list price. What is the delivered price (including freight) of the living room set, assuming a cash disco..

Write a menu driven program that accepts words : Write a menu driven program that either accepts words and their meanings, or displays the list of words in lexicographical order (i.e. as in a dictionary).

Dividends are expected to grow at a constant rate : The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.10 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 11 percent on the company's stock. What ..

How education is shaping social inequality : How education is shaping social inequality

Maintain constant growth rate in its dividends : Suppose you know that a company’s stock currently sells for $51 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it..

What tactics would you avoid and why : If you were launching a real campaign, what other tactics you would use and why (they may or may not be in the above list)? How will your promotion strategies address the diversity of your customer base? What tactics would you avoid and why

Encounter forms and aging reports : Describe the purpose of the encounter form and what impact does managing claims according to this model have on the financial health of the practice?

Issue of preferred stock outstanding : Lane, Inc., has an issue of preferred stock outstanding that pays a $3.35 dividend every year in perpetuity. If this issue currently sells for $90 per share, what is the required return?

Challenge ahead is to serve on board of directors : After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. Schenkel has 385,000 shares outsta..

User Account

All Pages