Share and the required return on the stock

Assignment Help Finance Basics
Reference no: EM131624781

Suppose you know that a company's stock currently sells for $50 per share and the required return on the stock is 10 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current dividend per share=

Reference no: EM131624781

Questions Cloud

Discuss which humanity disciplines will be relevant to topic : Discuss which humanities disciplines will be relevant to your topic and why (e.g., philosophy, religion, history, literature, art, etc.).
Calculate how much income jenner must recognize : Calculate how much income, if any, Dr. Jenner must recognize from the annuity received in 2015. Show your work
Stocks traded on the major exchanges : What do you think the Beta (ß) of your portfolio would be if you owned half of all the stocks traded on the major exchanges?
Firm wacc as a performance benchmark : A diversified company has decided to use its overall firm WACC as a performance benchmark for rating its divisional managers and to decide whether new projects.
Share and the required return on the stock : Suppose you know that a company's stock currently sells for $50 per share and the required return on the stock is 10 percent.
Prepare a budgeted income statement for april : The Balance Sheet of Best Photo Industries Limited, a distributor of photographicsupplies, Prepare a budgeted income statement for April
Why would the given entities make such a claim : Look up the term corrupt in the dictionary. What is its definition? Was corrupt appropriately applied to the actions of Arthur Andersen?
Long-term debt or almost : The M& M capital structure theories in chapters 15 and 21 persuasively argue that the optimal debt is not a 0.0 % debt to equity ratio (i.e., no debt).
What weaknesses do you feel your writing has : What weaknesses do you feel your writing has? See a list of ideas, but by no means is this list complete, so feel free to add your own ideas as well.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd