What is expected capital gain rate-dividend yield

Assignment Help Financial Management
Reference no: EM13935441

Axiom Corporation has a current price of $40, is expected to pay a dividend of $1 in one year, and its expected price right after paying that dividend is $42.

What is Axiom's expected dividend yield?

What is Axiom's expected capital gain rate?

What is Axiom's equity cost of capital?

Reference no: EM13935441

Questions Cloud

Price per share if its equity cost of capital : Summit Systems will pay a dividend of $1.50 this year. If you expect Summit's dividend to grow by 6% per year, what is its price per share if its equity cost of capital is 11%?
Use the formula to determine the total amount of payment : If the loan was $20,000 over 15 years at 12 percent the repayment would be $240.08
What is the price per share if its equity cost of capital : NoGrowth Corporation currently pays a dividend of $2 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 15% per year?
Prepare a production cost report for the month of august : Prepare a production cost report for the month of August.
What is expected capital gain rate-dividend yield : Axiom Corporation has a current price of $40, is expected to pay a dividend of $1 in one year, and its expected price right after paying that dividend is $42. What is Axiom's expected dividend yield? What is Axiom's expected capital gain rate?
What are key steps in the change process : When an action researcher is dealing with an organization that is under organized, what are key steps in the change process? Explain
Firm operates a truck on a job contracting basis : A)  A firm operates a truck on a job contracting basis. The job requests is Poisson distributed with a mean request rate of 1.5 per day. The average service time is 3.75 hours and is exponentially distributed. Determine all the performance measures a..
Analysts expect this dividend to grow : Lemma Systems will pay an annual dividend of $0.50 one year from now. Analysts expect this dividend to grow at 7% per year thereafter until the fifth year. After then, growth will level off at 3% per year. According to the dividend-discount model, wh..
Calculate the coefficients a of after two finite barrier : For the following system, use Matlab to: Calculate the coefficients A' of ?? after two finite barriers via transfer matrix approach. Calculate transmission probability (T=|A'|2/|A|2) in case of E>V. Choose E = 4 eV, V = 2 eV, a = 0.1 nm, b = 0.3 nm

Reviews

Write a Review

Financial Management Questions & Answers

  New shares and other operating improvements

Allen Lumber Company had earnings after taxes of $500,000 in the year 2009 with 420,000 shares outstanding on December 31, 2009. On January 1, 2010, the firm issued 25,000 new shares. Because of the proceeds from these new shares and other operating ..

  What is the expected market value of a bond

What is the expected market value of a bond that has 5 years to maturity, a yield of 6.5% a coupon rate of 7.5%, a cost basis of 10354.18 and a fair market value of 10,000? The bond pays interest semi-annually.

  Principal and the remaining accrued interest

Ron borrows $20,000 for 20 years at an annual rate of interest of 10% convertible semi-annually. He repays $500 in interest at the end of each six months. The principal and the remaining accrued interest are to be paid at the end of 20 years by equal..

  Calculate the risk premium on its common stock

Given the following information for the stock of Foster Company, calculate the risk premium on its common stock.

  What is its weighted average cost of capital

A company has 100 million shares outstanding trading for $8 per share. It also has $900 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 12%, and its effective corporate tax rate is 40%, what is its w..

  Shift the risk of obsolescence from the user to the lessor

A warrant is basically a long-term option that enables the holder to sell common stock back to the firm at an agreed upon price, at a specified time in the future. Under a sale and leaseback arrangement, the seller of the leased property is the lesso..

  Describe what major factors should the company be aware

What major factors should the company be aware of as it evaluates possible investment projects in the future? Would you be interested in investing in this company? Why or why not? Are there additional factors that aren't a part of this case that you..

  Original responsibility of the federal reserve

Which of the following was not an original responsibility of the Federal Reserve?

  Depository transfer checks to move surplus funds

Banks use depository transfer checks to move surplus funds from bank accounts to its concentration bank account or accounts. Explain how this is done.

  Calculated with the same annual effective interest rate

Tracy receives payments of $X at the end of each year for n years. The present value of her annuity is 493. Gary receives payments on $3X at the end of each year for 2n years. The present value of his annuity is $2,748. Both present values of calcula..

  What are the annual taxes owed on the interest

Molly Matters Inc. issues a split-coupon $1,000 bond that matures in seven years. Interest payments are $70 a year (7 percent) and start after three years have lapsed. The bond initially sells for a discounted price of $816.3. You are in the 30 perce..

  Value bel vino and starshine using market multiples

What are some key financial differences between the three companies in the simulations? What primary advantages does your company bring to the table in a potential merger or acquisition? What sources of synergy are possible in your two potential tran..

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