What is expected rate of return on the stock

Assignment Help Finance Basics
Reference no: EM131914550

Thomas Brothers stock is selling for $6.25 per share and it is expected to pay a $.50 per share dividend at the end of the year. The dividend of the stock is expected to grow at a constant rate of 7% per year. What is expected rate of return on the stock?

Reference no: EM131914550

Questions Cloud

What are the total finance charges on loan : He is making a $2,000 down payment and will be making 60 monthly payments of $541 each. What are the total finance charges on this loan?
Develop foundational skills in composing a structured essay : Analyse the components of the Australian legal systems, and elaborate how these components intersect and interact and how lawyers use these systems.
What is miguels basis in the partnership interest : The land is subject to a $15,000 liability which Miguel assumes. What is Miguel's basis in the partnership interest following the distribution of land?
Cumulative preferred shares : 20,000 common shares1,000, 6%, $100 par cumulative nonconvertible preferred shares2,000, 4%, $50 par cumulative preferred shares
What is expected rate of return on the stock : The dividend of the stock is expected to grow at a constant rate of 7% per year. What is expected rate of return on the stock?
Briefly explain how the issue was addressed in your country : Briefly explain how the issue was addressed in your country of choice. Be specific about which ?branch of government addressed the issue and the outcome.
What is value of stock : If the required rate of return on this stock is 12%, what is value of this stock?
Do you see any risks to religion in treating it as a product : Do you see any risks to religion in treating it as a product to be marketed and sold? Explain. Why has religion increasingly become a product in the commercial.
How corporate leaders may make improper assumptions : Based on your research, assess how corporate leaders may make improper assumptions related to accounting information systems

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be most important to investigate

In evaluating the department in terms of its increases in sales and expenses, what will be most important to investigate?

  Calculate the continuous compound annual rate of inflation

Calculate the continuous compound annual rate of inflation if the index of retail prices was 134.67 on the 1st of January 1995, and had risen to 204.78 by the 1st of January 2000.

  Why does the longer-term bond price vary more

Why does the longer-term bond's price vary more when interestrates change than does that of the shorter-term bond?

  Which of the following is the least costly security to issue

The costs associated with issuing securities to the public can be high. Some types of securities have lower expenses associates with them than others. Which of the following is the least costly security to issue?

  Why would investor use a multiphase dividend discount model

If a company's dividends are expected to decline, is it possible to still use the constant growth dividend discount model? What is the relation between the expected return on a stock and the stock's dividend yield?

  Estimate of equity beta for frim a

If you find that equity beta is different between Frim A and its comparable firm in (a), how would you explain the difference? If you expect no difference explain why they are not different.

  How much is the loan worth at issuance

How much is this loan worth at issuance if the market YTM for such loans is 7.125% BEY?

  What is the outcome of each election

Consider a society with three people (John, Eleanor, and Abigail) who use majority rule to decide how much money to spend on schools.

  What is the approximate effective cost of missing the cash

What is the approximate effective cost of missing the cash discounts from each supplier? If you could take advantage of either cash discount offer, which supplier would you select?

  What is the difference between a push and pull production

What is the difference between a push and pull production system?

  Bobs 16-year 1000 par value bonds pay 12 interest annually

bobs 16-year 1000 par value bonds pay 12 interest annually. the market price of the bonds are 880 and the yield to

  Purchase an option to protect yourself

Instead of monitoring the firm, you can also purchase an option to protect yourself. If you were to completely protect yourself against the state of the world where the firm does not pay you back, would you buy a (call or put) option on the final ..

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