Two determinants of the growth rate in dividends

Assignment Help Financial Management
Reference no: EM13885411

What are the two determinants of the growth rate in dividends?

The retention rate and return on equity

The discount rate and the equity multiplier

The earnings yield and operating margin

The interest rate and the current ratio

Reference no: EM13885411

Questions Cloud

Shareholders in form of share repurchases and dividends : PDQ Corporation is forecast to have total earnings of $1 billion next year and to pay out a total of 25% of these earnings to shareholders in the form of share repurchases and dividends. PDQ Corporation has 100 million shares outstanding. Its earning..
Monthly loan payment : (Monthly loan payment) Best Buy has a flat-screen HDTV on sale for $1,699. If you could borrow that amount from Carl's Credit Union at 6% for 1 year, what would be your monthly loan payments?
What is the implied rate of return on this stock : A stock will pay a dividend of $4 at the end of the year. It sells today for $100 and is expected to sell in one year for $105. What is the implied rate of return on this stock? Enter in percent and round to two decimal places.
A stock will pay constant dividends : A stock will pay constant dividends of $5 every year. Its required rate of return (a.k.a., cost of capital, discount rate) is 12%. What is the value of the stock? Round to the penny.
Two determinants of the growth rate in dividends : What are the two determinants of the growth rate in dividends?
Calculate each institutions cgap as percent of assets : A thrift has an annual CGAP of -$25 million. A credit union has an annual CGAP of +$5 million. The thrift has total assets of $500 million and net income of $7.5 million and the credit union has total assets of $40 million and net income of $0.7 mill..
Discount rate is appropriate for this stock-what is value : A fast-growing firm recently paid a dividend of $0.35 per share. The dividend is expected to increase at a 20 percent rate for the next four years. Afterwards, a more stable 11 percent growth rate can be assumed. If a 12.5 percent discount rate is ap..
Account that pays nominal interest rate : Suppose that on January 1 you deposit $100 in an account that pays a nominal (or quoted) interest rate of 11.33463% with the interest added (compounded) daily. how much will you have in your account on October 1, or 9 months later?
Determine the payback period-npv and irr for both project : Determine the Payback period, NPV and IRR for both project A and B (show work). Which Project would you select and why? Be specific. Project A will require an initial investment of $ 200,000 and Project B will require and initial investment of $ 325,..

Reviews

Write a Review

Financial Management Questions & Answers

  Standard deviation of that starting salary

You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. Without considering the additional educational years or the..

  Find an average price earnings ratio for the food industry

Find an average price/earnings (P/E) ratio for the specialty retail food industry. (Note: you cannot do this for Kudler as you do not have the firm's current market stock price.) Find an average price/earnings (P/E) ratio for the food retail indust..

  Has central bank intervened in foreign exchange market

Identify its growth in output per capita and in population growth - Is it an open or closed economy?

  Explain capital asset pricing model

Security A has an expected rate of return of 6%, a standard deviation of returns of 30%, a correlation coefficient with the market of -0.25, and a beta coefficient of -0.5. Security B has an expected return of 11%

  Last payment at an annual effective rate of interest

Consider an annuity-due with 12 annual payments. The first payment is 4000 at time 0 and each subsequent payment decreases by 5%. Find the AV of this annuity 2 years after the last payment at an annual effective rate of interest i=6%.

  Difference in statement of cash flows and cash flow forecast

Hopefully, this will all help us to learn together and as our week progresses. Please let me know if it does. Briefly explain what you understand by the accruals concept. Briefly describe the difference between a statement of cash flows and a cash fl..

  Sample proportions distribution with normal distribution

About 74% of Freddie Mac-owned loans were refinanced in the second quarter of 2005 (USA Today, Lifeline, August 3, 2005), resulting in new mortgages carrying loan amounts at least 5% above the original mortgage balance. Determine if the sample size f..

  Why they have such a high rate of disability claims

You are benefits consultant reviewing the disability coverage’s offered by one of your client firms. ."The plan is not integrated with workers' compensation or Social Security benefits at all. Explain to the firm why they have such a high rate of dis..

  Assume that the maturity risk premium is zero

The Wall Street Journal reports that the current rate on 5-year Treasury bonds is 2.50 percent and on 10-year Treasury bonds is 4.65 percent. Assume that the maturity risk premium is zero. Calculate the expected rate on a 5-year Treasury bond purchas..

  Define the value of a firm might change

Describe how, in principles, the value of a firm might change as its leverage increases. Discuss why, in practice, firms might choose high levels of debt.

  What is the companys equity price to book ratio

The company share price in the stock market is $42. The equity book value per share according to the balance sheet is $56. There are 540 million shares outstanding. What is the company’s equity price to book ratio?

  Explain the signalling theory of capital structure

Surf Rider Inc. has 5,000 bonds outstanding with a 6% annual coupon rate, 10 years to maturity, a $1,000 face value, and a market quote of 220%. The company’s 50,000 shares of preferred stock pay a $6 annual dividend, and sell for $120 per share. The..

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