What is the current dividend per share

Assignment Help Financial Management

Reference no: EM131048250

Suppose you know a company's stock currently sells for $80 per share and the required return on the stock is 14 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. Required: If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

a) $10.47

b) $5.23

c) $5.67

Reference no: EM131048250

Questions Cloud

Balance sheet equity-ncome statement shows net income : Fly Away, Inc., has balance sheet equity of $6.5 million. At the same time, the income statement shows net income of $780,000. The company paid dividends of $397,800 and has 120,000 shares of stock outstanding. If the benchmark PE ratio is 29, what i..

Speculators expect the spot rate of the yen : If speculators expect the spot rate of the yen in 60 days to be ____ than the 60-day forward rate on the yen, they will ____ the yen forward and put ____ pressure on the yen's forward rate. Fill in blanks

Equired return-what is the current share price : Marcel Co. is growing quickly. Dividends are expected to grow at a 22 percent rate for the next 3 years, with the growth rate falling off to a constant 6 percent thereafter. Required: If the required return is 14 percent and the company just paid a $..

A value of p for which the covariance : (b) Show that there is a value of p for which the covariance in (a) is zero. For this value, are the two random variables in (a) independent?

What is the current dividend per share : Suppose you know a company's stock currently sells for $80 per share and the required return on the stock is 14 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. Required: ..

What flaws were masked by suburban mass culture : Discuss the fear and condemnation expressed by some critics of mass culture in America after World War II. Specifically, what flaws were masked by suburban mass culture?

Job satisfaction in the banking industry or the logistical : Research consortium: the organisations that financed the research (banks) are both research subjects and are involved in the research design which could cause a conflict of interest. How could you deal with this ethical issue in this research situati..

Analyze the complexities of the intergovernmental relations : Understand how relationships between participants in the policy process (including official and nonofficial actors) influence the policy process.

Explain the authors thesis-the main point or points : Explain the author's thesis-the main point or points that he/she is trying to make in the article. This is not a description or summary of the article; it is an explanation of the author's purpose.

User Account

All Pages