What is return shareholders are expecting

Assignment Help Financial Management
Reference no: EM131336562

Ecolap Inc. (ECL) recently paid a $0.36 dividend. The dividend is expected to grow at a 13.50 percent rate. The current stock price is $43.72.

What is the return shareholders are expecting? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131336562

Questions Cloud

Describe the social psychology network website : For this assignment, explore the Social Psychology Network website. Get comfortable searching for information. Scan the professional profiles of social psychologists and learn about their social psychological research.
What insurance goals and risk management plan : Vikki and Tim Treble have been married for two years. They bought and moved into their first house within the last six months and have been decorating and making minor renovations ever since. The first room they concentrated on was the baby’s room. W..
Derive and graph homes import demand schedule : Derive and graph Home's import demand schedule. What would the price of wheat be in the absence of trade - Derive and graph Foreign's export supply curve and find the price of wheat that would prevail in Foreign in the absence of trade
Government involvement in the markets : What is price-wage rigidity? Do you agree with Keynes assessment that wage-price rigidity requires government's involvement in the markets? Why? Why not?
What is return shareholders are expecting : Ecolap Inc. (ECL) recently paid a $0.36 dividend. The dividend is expected to grow at a 13.50 percent rate. The current stock price is $43.72. What is the return shareholders are expecting?
How do humans seek to understand themselves : How do humans seek to understand themselves? What avenues do they use to do this, and are they happier or healthier when they understand their own personality and needs? Why or why not?
Present the derivation of the analytical formula : If the recombination is entirely due to gold, what must the gold concentration be smaller than, and how many gold atoms are there in the space-charge layer for a area of 100μm2? Use the recombination data at the gold levels given in chapter
Compute the value of stock with required return : A firm is expected to pay a dividend of $3.05 next year and $3.35 the following year. Financial analysts believe the stock will be at their price target of $120 in two years. Compute the value of this stock with a required return of 13.3 percent.
Examine the invention and growth of crowdsourcing of design : Crowdsourcing in the field of interface design takes tasks traditionally performed by specific individuals and spreads them out among a group of people or a community. These assignments are usually done through an open call. Crowdsourcing has beco..

Reviews

Write a Review

Financial Management Questions & Answers

  Size of the monthly payments he will be required to make

Joe secured a loan of $10,000 two years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 4%/year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by amor..

  What is the expected price of gmc stock

What is the expected price of GMC stock on the ex- dividend date if there are no personal taxes on dividend income received?

  When the dollar is worth more in relation to currencies

When the dollar is worth more in relation to currencies of other countries, are you more likely to buy American made or foreign made jeans? Are US companies that manufacture jeans happier when the dollar is strong or when it is weak? What about an Am..

  What is its return on assets

The Purple Martin has annual sales of $887,400, total debt of $210,000, total equity of $465,000, and a net profit margin of 5%. What is its return on assets?

  Explain and offer the strengths-weakness-opportunities

You are the administrator of a major regional not-for profit hospital. At the latest board meeting, certain members of the board noted that an increasing amount of the competitor hospitals are pursuing "other sources of revenue". Please explain and o..

  Explain the current yield offered by each preferred stock

What is the current yield offered by each preferred stock? Why are the prices of these preferred stocks different even though they both pay the same dividend?

  About the corporate bond

A corporate bond that you own at the beginning of the year is worth $945. During the year, it pays $59 in interest payments and ends the year valued at $935. What was your dollar return and percent return?

  What is the profitability of this bio-diesel

Tata Chemicals, leading manufacturer of Caustic Soda in the country said today that it had bought a 35 per cent stake in JOIL Pte, a Singapore based jatropha seeding company. The stake buy will help the firm gain exclusive marketing rights for techno..

  What must be the expected return to stock

The returns on stocks A and B are perfectly negatively correlated (rho_AB = -1). Stock A has an expected return of 21 % and a standard deviation of return of 40%. Stock B has a standard deviation of return of 20%. The risk-free rate of interest is 11..

  Amount of principal paid in the even numbered instalments

A loan is to be paid off in twenty annual instalments of $100, with the first payment due one year after the loan is made. What is the total amount of principal paid in the even numbered instalments, if the effective rate of interest is 4%?

  Undertake some silvicultural activities to increase yield

You recently purchased some immature timberland that is forty years from being harvested. You expect to get $438/MBF when you harvest the timber. Prior to harvesting, you have two objectives. You hope to come up with a plan to generate some annual re..

  Simple interest on its savings account balances

First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually. If you made a $69,000 deposit in each bank, how much more money would you earn from your Second City..

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