What is rate of return on this security

Assignment Help Financial Management
Reference no: EM131337915

Enrite Gas recently paid a $4.75 annual dividend on its common stock, which is expected to increase at an average rate of 3.5% per year. If the stock is currently trading for $39.33 per share, what is its market rate of return?

Town Bagel common stock sells for $65 a share and pays an annual dividend that increases by 4% annually. The market rate of return on this stock is 14%. What is the amount of the last dividend paid?

Erie Health Care common stock offers an expected total return of 9.5%. The last annual dividend was $2.10 a share and dividends are expected to increase at a constant 3.5% percent per year. What is the dividend yield?

The preferred stock of AKA Enterprises pays an annual dividend of $8.50 and sells for $70.25 a share. What is the rate of return on this security?

Reference no: EM131337915

Questions Cloud

What foreign exchange exposures do your company have : There is an increasing demand in the US to learn Spanish because many students want to study abroad in Latin American countries and an increase Hispanic population in the US. What foreign exchange exposures do your company have? How does peso depreci..
What will the price be in three years and current price : The Starr Co. just paid a dividend of $1.80 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. Investors require a return of 11 percent on the stock. What will the price be in three year..
Should investors buy-hold or sell the stock of walmart : Creditors should loan money to Walmart in the long-term. Should investors buy, hold, or sell the stock of Walmart?
Investors expectation of price of the stock at end of year : A share of stock with a beta of .84 now sells for $59. Investors expect the stock to pay a year-end dividend of $4. The T-bill rate is 3%, and the market risk premium is 6%. If the stock is perceived to be fairly priced today, what must be investors’..
What is rate of return on this security : Enrite Gas recently paid a $4.75 annual dividend on its common stock, which is expected to increase at an average rate of 3.5% per year. If the stock is currently trading for $39.33 per share, what is its market rate of return? The preferred stock of..
Willing pay to purchase one share of stock in lion equity : Lion Equity paid an annual dividend of $3.25 per share last month, and it is anticipated that future dividends will increase by 4% annually. As a shareholder, if you require a 11% return on your investment in Lion Equity, how much are you willing pay..
Presumed to be negligent under which legal doctrine : Dr. Jones is an orthopedic surgeon. One patient required arthroscopic surgery on his right knee because of cartilage damage. When the patient awoke from surgery, he was surprised to see bandages on both knees. He was told that Dr. Jones made an incis..
What is the company pay-out ratio for the problem : What is the company’s pay-out ratio for the following problem: Pate & Co. has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity. The company forecasts that its net income this yea..
Prepare flexible budget for january production costs : Normal Volume per month is 40,000 direct labor hours. Beal’s January 2004 budget was based on normal volume. Prepare a flexible budget for January 2004 production costs, based on actual production of 7,800 units.

Reviews

Write a Review

Financial Management Questions & Answers

  Accounting rules when presenting their financial statements

Even though firms follow the accounting rules (GAAP) when presenting their financial statements, it is still possible for conflicts of interest to exist between what management wants investors and creditors to see and the economic reality of transact..

  Annual deposits into a retirement account

You make $9,900 annual deposits into a retirement account that pays an APR of 9.7 percent compounded monthly. How large will your account balance be in 32 years?

  Terms of product-price-place and promotion

What should be marketing mix strategies for new mba program (will launch early next year) of university in terms of product, price, place and promotion?

  How economic conditions affect the default risk premium

Do you think the default risk premium will likely increase or decrease during the next 6 months? How do you think the yield curve will change during this time? Offer some logic or current reference(s) to support your answers.

  Calculate the initial investment-final liquidation value

Hekinan Corporation has bought 4000 barrels of Brent crude oil $112.63 a barrel. It has sold call options on 2000 barrels of oil, with exercise price $110, for $5.50 each; and options on 1000 barrels of oil, exercise price $115, for $1.80 each. Calcu..

  Compute before-tax yield to investors from the bonds-warrant

The current stock price of Mesa Industries, Inc. is $20 per share. The company wants to sell 20-year, annual coupon, $1000 par value bonds. Each bond will have attached 50 warrants; each warrant is exercisable into 1 share of stock at an exercise pri..

  Shares of common stock outstanding

Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $88, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, a coupon rate..

  What is the value of stock when the required return

Financial analysts forecast ABC Inc. growth for the future to be 12%. ABC's recent dividend was $1.50. What is the value of ABC stock when the required return is 15%?

  Expected rate of return on the market portfolio

If the expected rate of return on the market portfolio is 15% and T-bills yield 4%, what must be the beta of a stock that investors expect to return 12%?

  Determine the annual loan payment

Determine the annual loan payment, and break it into the amount of interest and the amount of principal paid for each year.

  What is the value of one right

Frank Enterprises is sponsoring a rights offering wherein every shareholder will receive one right for every share of stock they own. The new shares in this offering are priced at $25 plus 5 rights. The current market price of Frank Enterprises stock..

  Question 1a ceos usually talk about developing a learning

question 1a. ceos usually talk about developing a learning organization? what is meant by a learning organization?b

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