What is expected capital gains yield-dividend yield

Assignment Help Financial Management
Reference no: EM131300295

The next dividend payment by Halestorm, Inc., will be $2.00 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. The stock currently sells for $40 per share.

What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Dividend yield %

What is the expected capital gains yield?

Reference no: EM131300295

Questions Cloud

What yield to maturity is bond offering : A 7.45 percent coupon bond with 14 years left to maturity is offered for sale at $1,015.00. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
Motives for holding cash concerns managers ability : Which of the following motives for holding cash concerns managers’ ability to take advantage of unexpected positive NPV investments when they arise? a) Transaction motive b) Precautionary motive c) Speculative motive d) Agency motive.
Reduce its dividend growth rate : Storico Co. just paid a dividend of $1.85 per share. The company will increase its dividend by 24 percent next year and will then reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6 percent divid..
Growth rate in dividends-what is the current share price : Bayou Okra Farms just paid a dividend of $3.00 on its stock. The growth rate in dividends is expected to be a constant 4 percent per year indefinitely. Investors require a return of 11 percent for the first three years, a return of 9 percent for the ..
What is expected capital gains yield-dividend yield : The next dividend payment by Halestorm, Inc., will be $2.00 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. The stock currently sells for $40 per share. What is the dividend yield? What is the expected capital..
Maintenance to minimize the overall equivalent annual cost : The initial cost of a bridge that is expected to be in place forever is $7O llion. Maintenance can be done at 1-, 2-, 3-, or 4-year intervals, but the longer the interval between servicing, the higher the cost. What interval should be scheduled for m..
Relative to the other cash management models : Which of the following motives for holding cash concerns managers’ ability to meet financial obligations when due? Relative to the other cash management models (i.e. Baumol Model and Miller-Orr Model), the Stone model is _______________practical.
Pay over the life of the loan from the higher interest rate : Recently, Wells Fargo CEO John Stumpf testified before the Senate Finance Committee regarding the opening of over 2 million accounts without client consent. In some cases, people were charged fees, late fees, and collection fees on accounts they had ..
Share price using the constant growth model : Over the past 16 years, Walmart's dividends have grown from $0.27/yr to $1.99/yr. Assuming the same growth rate and a market discount rate of 16%, compute the present value of Walmart's share price using the constant growth model.

Reviews

Write a Review

Financial Management Questions & Answers

  How much is the target cost per unit

A new product is being designed by an engineering team at Golem Security. Several managers and employees from the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a targ..

  Earnings per share on the common stock

Mimi's Muffins. has earnings after taxes of $128,750. Interest expense for the year was $20,000; preferred dividends paid were $18,750; and common dividends paid were $30,000. Taxes were $15,000. The firm has 100,000 shares of common stock outstandin..

  What is the base-case variable cost per unit

A project has base-case earnings before interest and taxes of $11,444, fixed costs of $38,000, a selling price of $26 a unit, and a sales quantity of 14,200 units. All estimates are accurate within a plus/minus range of2 percent. Depreciation is $11,..

  Calculate bond equivalent yield and effective annual return

Calculate the bond equivalent yield and effective annual return on a jumbo CD that is 115 days from maturity and has a quoted nominal yield of 6.62 percent.

  Compute the delta of given portfolio

Compute the option prices C1, P2 on that date.-  Compute the Delta (?) of this portfolio. -  Compute the Gamma (Γ) of this portfolio.

  How much will you pay for the stock

Alexander Corp. will pay a dividend of $4.30 next year. The company has stated that it will maintain a constant growth rate of 4.75 percent a year forever. If you want a return of 12 percent, how much will you pay for the stock?

  Her capital gain per share

Sarah purchased a stock one year ago at a price of $32 a share. In the past year, she has received four quarterly dividends of $0.75 each. Today she sold the stock for $38 a share. Her capital gain per share is

  Utilized for the foreseeable future

Vandalay Industries is trying to choose between two alternative (mutually exclusive) machines. Whichever machine is selected will be utilized for the foreseeable future (in addition, for the foreseeable future, all revenues, costs and expenses are ex..

  What is the maximum number of shares-initial margin

Carson Corporation stock sells for $77 per share, and you've decided to purchase as many shares as you possibly can. You have $43,000 available to invest. What is the maximum number of shares you can buy if the initial margin is 60 percent?

  Stock index futures contracts have become very popular

Since their introduction, stock index futures contracts have become very popular and are now widely traded by finance professionals. What is the fourth primary factor involved in stock index futures contract pricing, and how does this factor affect s..

  Transfers from marketable securities to cash

Barenbaum Industries projects that cash outlays of $4.5 million will occur uniformly throughout the year. Barenbaum plans to meet its cash requirements by periodically selling marketable securities from its portfolio. Use the Baumol model to determin..

  Considering the construction of a new plant

Microwave Oven Programming, Inc is considering the construction of a new plant. The plant will have an initial cash outlay of $8.3 million (= -$8.3 million), and will produce cash flows of $3.3 million at the end of year one, $5.3 million at the end ..

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