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

  Compare and contrast the weaknesses and the threats

Assuming that a organization is privately held, wants to expand operations, and is faced with three options for expansion: Going public through an IPO, Acquiring another organization in the same industry, Merging with another organization.

  Discuss about the reorganization and liquidation

In January 2009, American electronics retailer Circuit City Inc. closed all of its stores and sold all of its merchandise. The above is an example of.

  Prepare a report analysing the financial statements - tata

Prepare a report analysing the financial statements of a chosen company. Your financial analysis should focus on the profitability, turnover and financial position of the organisation

  What are same possible ways that corporate accountants might

Free cash how is often considered a more reliable measure of a company's income than reported earnings. What are same possible ways that corporate accountants might be able to change their earnings to portray a more favorable earnings statement?

  Mcdougal entertainment is offering 75000 shares of stock to

mcdougal entertainment is offering 75000 shares of stock to the public in a general cash offer. the offer price is 36 a

  Define lessee lessor operating lease financial lease

Define each of the following terms: a. Lessee; lessor b. Operating lease; financial lease; sale and leaseback; combination lease; synthetic lease; SPE c. "Off-balance sheet" financing; capitalizing

  Manufacturer of aluminum windows and shades

Frame Inc. is a manufacturer of aluminum windows and shades. For the past few years the firm had spent $ 200 million

  What does the central limit theorem state

The means of many random samples from a population will be normally distributed.

  What are offsetting open market operations

What are offsetting open market operations? --  When would the Fed use an offsetting open market purchase? An offsetting open market sale?

  Xyz company has sales of 15450 costs of 4800 depreciation

xyz company has sales of 15450 costs of 4800 depreciation expense of 1900 and interest expense of 1250. if the tax rate

  What is the cards eff

Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 18.00%, with interest paid monthly, what is the card's EFF%?

  Journal entries to record issuance of stock declaration of

journal entries to record issuance of stock declaration of dividend and payment of dividend.common and preferred stock

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