What do investors expect the dividend growth rate to be

Assignment Help Finance Basics
Reference no: EM13286337

A company paid dividend of $2.00 per share,and investors believe that the dividend will increase at a constant rate into the foreseeable future.The price of stock is currently $65.00 per share, and investors required a minimum annual rate of return on the company's stock = 7.2%. what do investors expect the dividend growth rate to be?

Reference no: EM13286337

Questions Cloud

Determine the average power delivered to the tissues : A defibrillator consists of a 17.0-µF capacitor that is charged to 8.5 kV. What is the average power delivered to the tissues
Find the ratio of the larger power to the smaller power : Two atmospheric sound sources A and B emit isotropically at constant power. find the ratio of the larger power to the smaller power
Explain the titration coincide with the stoichiometric point : If it is unnecessary to add an indicator to KMnO4 titration because of its intense deep purple color. will the end point of the titration coincide with the stoichiometric point. explain
How long is the second organ pipe : If an organ pipe, 2 ft long and with one end closed and one end open, how long is the second organ pipe
What do investors expect the dividend growth rate to be : A company paid dividend of $2.00 per share,and investors believe that the dividend will increase at a constant rate into the foreseeable future.The price of stock is currently $65.00 per share.
Define what could be wrong if you turn on a circuit breaker : What could be wrong if you turn on a circuit breaker after working on the circuit and the breaker does not trip but there is no power to the circuit
Explain the melting behavior for the compound : The melting point of a pure compound is 152-153 C. Describe the melting behavior for this compound if it is contaminated with 5% of an impurity.
What is intc''s cost of equity : If the beta of INTC stock equals 1.6, the risk-free rate equals 6 percent, and the expected return on the market portfolio equals 11 percent, what is INTC's cost of equity?
Determine the voltage cross the capacitor at t : Supposed that at t=0, we connect an uncharged 10μF capacitor to a charging circuit consisting of a 2500V voltage source in series with a 2MΩ resistance. At t=40s, the capacitor is disconnected from the charging circuit and connected in parallel wi..

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the net cash provided by operating activities

King Company makes a short-term investment in 300 shares of Renfro Corporation's common stock. The stock is purchased for $30 a share plus brokerage fees of $400.

  How much will be in the account three years

If you also add another $5,000 to the account one year (12 months) from now and another $7,500 to the account two years from now, how much will be in the account three years (12 quarters) from now?

  How might pam and josh use mutual funds

Finally, they talk with various financial advisers and other investors to gather additional information.

  Prepare a loan amortization schedule showing the interest

Loan amortization schedule Joan Messineo borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments.

  Scribe agency conflict and the measures

scribe agency conflict and the measures that can reduce the possibility of such a conflict in a corporation.

  The slope of the regression line

A graph shows a corporation's common stock returns on the Y axis and the market returns on the X axis. The slope of the regression line represents

  Computation of ratios for given financial statement data''s

Computation of ratios for given financial statement data's and you have been provided with the financial statements for Grannie's Closet for the last three years

  Computation stock price and return by gordon growth model

Computation stock price and return by Gordon growth model and The dividend is expected to grow at a constant rate of 6 percent a year

  Calculate the equal monthly payments

Suppose you are purchasing your first house for $220,000, and are paying $30,000 as a down payment. You have arranged to finance the remaining $190,000 30-year mortgage with a 7% nominal interest rate and monthly payments.

  Find the net community profit

A hospital incurs 10 million dollar of cost to treat Medicaid patients and receives $7 million in payment. Actual charges for these Medicaid patients were 20 million dollar.

  Computation of return of a given portfolio

Computation of return of a given portfolio of amount invested and this year nothing has changed except for the fact that the market risk premium has increased by 2 percent

  What is profitability index if discount rate is 11 percent

A firm is reviewing a project that has an initial cost of $71,000. The project will produce annual cash inflows, starting with year 1, of $8,000, $13,400, $18,600, $33,100, and finally in year 5, $37,900. What is the profitability index if the dis..

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