Problem regarding the dividend growth rate

Reference no: EM131000461

The current yield on Alpha's common stock is 4.8%. The company just paid a $2.10 dividend. The rumor is that the dividend will be $2.205 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Alpha's stock?

Reference no: EM131000461

Questions Cloud

Short run costs as a team owner increases quality : Use a graph to explain what happens to short run costs as a team owner increases quality. What type of expenditure is made by owners to make this shift occur? Is team ‘quality’ a short run or long run choice?

Garden depot is a retailer that is preparing its budget for : Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Complete the company's cash budget for the upcoming fiscal year.

Economic growth spreads evenly to the masses : Even though economic growth is occurring in sub-Saharan Africa, explain two strategies that should be used to enhance the likelihood that economic growth spreads evenly to the masses within Sub-Saharan Africa.

The table below contains selected financial information : Obtain annual reports from three corporations in the same primary industry and compare the management of each company's investment in receivables.

Problem regarding the dividend growth rate : The rumor is that the dividend will be $2.205 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Alpha's stock?

Stainless endplate connection under tension : Content:Endplate connection is commonly used in steel structures. Replacing the conventional carbon steel endplate by stainless steel endplate can greatly increase the deformation capacity of the connection, meaning the connection can absorb much gre..

Present worth and equivalent uniform annual cost analysis : Currently a heating unit for a small building is very old and inefficient. The owner is contemplating on replacing it with a variable air volume system that costs $100,000 and will save 450,000 kWh each year. Base your decision on the (a) present wor..

Why do incident parallel rays stay parallel after reflection : Why do incident parallel rays stay parallel after reflection from a plane mirror? Why do incident parallel rays of light converge after reflection from a concave mirror?

Identification of key issues and main points : The paper will be evaluated as follows: Analysis of Document, Identification of key issues and main points and Understanding of Audience

User Account

All Pages