What are the characteristics of dividend

Assignment Help Finance Basics
Reference no: EM133056807

Why is so difficult to determine the value of a share? How are they different as compared to Bonds?

A company has just paid a cash dividend of $2 per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady 8% per year, what is the current value of the share? What will be the share be in five years?

Suppose we observe that a stock is selling for $40 per share. The next dividend will be $1 per share, and you think the dividend will grow at 12% per year forever. What is the dividend yield in this case? The capital gain yield? The total required return?

What are the characteristics of dividend? How does dividend affect tax?

You observe a stock price of $18.75. You expect a dividend growth rate of 5% and the most recent dividend was $1.50. What is the required return?

Reference no: EM133056807

Questions Cloud

When using different data algorithms : When using different data algorithms, why is it fundamentally important to understand why they are being used?
Find holding period yield : Use the following information for the next four (5,6, 7 and8) problems:
Determine the number of days past : Determine the number of days past due for each of the preceding accounts as of March 31st. Then, complete an aging of receivables schedule
Find the present values of the cash flow streams : Find the present values of the following cash flow streams. The appropriate interest rate is 8%. (Hint: It is fairly easy to work this problem dealing with the
What are the characteristics of dividend : Why is so difficult to determine the value of a share? How are they different as compared to Bonds?
Calculate the approximate percentage change : Suppose the interest rates in the market fall to 10 percent. Calculate the approximate percentage change in the bond's price?
What amount of aggregate investment income : Required - What amount of aggregate investment income (AII) will be included in Parthenon's net and taxable income in the year
Calculate the expected return for all three portfolios : You recently graduated and got a job at J, J&J investment, on your first day at work you were given the task of estimating the expected returns for 3 portfolios
Treating at least three diseases or conditions. : Writer describes trends in the costs of care for treating at least three diseases or conditions.

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