What is the current dividend per share

Assignment Help Finance Basics
Reference no: EM132657479

Suppose you know a company's stock currently sells for $69 per share and the required return on the stock is 0.14. You also know that the required return is evenly divided between the capital gains yield (G) and the dividend yield (D1/P0) (this means that if the required retun is 9%, the capital gains yield is 4.5% and the dividend yield is 4.5%).If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? Answer with 2 decimals (e.g. 1.23)

Reference no: EM132657479

Questions Cloud

What is the Deferred Tax Expense for the year ended June : A building was purchased on 1 July 2015 for $2 600 000. What is the Deferred Tax Expense for the year ended 30 June 2018
Explore and assess different remote access solutions : Explore and assess different remote access solutions. Discuss which of the two remote access solutions, virtual private networks (VPNs) or hypertext transport.
Share of preferred stock cost-e-eyes-com : E-Eyes.com Bank just issued some new preferred stock. The issue will pay a $10 annual dividend in perpetuity, beginning 17 years from now.
Differences between certain categories of crimes : Explain the differences between certain categories of crimes. For each of the following categories of crime,
What is the current dividend per share : If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? Answer with 2 decimals (e.g. 1.
What is the ending balance of the Deferred Tax Liability : Accounting profit before tax was 700 000. What is the ending balance of the Deferred Tax Liability account for the year ended 30 June 2018
How to calculate the total cost for next february : Calculate the total cost for next February when 1,450 tons are expected to be extracted. Antioch uses the high-low method to analyze costs.
Determine current share price-marcel co : Marcel Co. is growing quickly. Dividends are expected to grow at a rate of 0.16 for the next 4 years, with the growth rate falling off to a constant 0.04 therea
Review the culture at your organization : Review the culture at your organization and discuss the impact of how it would/did affect building the Interim Business Continuity Plan.

Reviews

Write a Review

Finance Basics Questions & Answers

  List projects that you would accept

a. List projects that you would accept. b. Which projects have been rejected usinf the cost of capital as a hurdle rate?

  What is the approximate percentage change

What is the approximate percentage change in this bond's price if yields on comparable securities rise to 4 percent? What is the actual percentage change in this bond's price if yields on comparable securities rise to 4percent (use a financial..

  Describe a price discrimination opportunity

Describe a price discrimination opportunity your company faces-direct, indirect, or bundling. Tell your company how best to implement the scheme, and compute the profit consequences of implementing the scheme.

  Describe how this might affect the marketing mix

Baby boomers born between 1946-1964 in America are aging. Select one of the companies below and describe how this might affect the marketing mix for the organization.

  Calculate the company growth rate of eps

Calculate the company's growth rate of EPS or dividends. Compare your calculation with publicly-available information from any of the websites listed in the directions

  Explain firms can liquefy their accounts receivable

Many firms offer factoring services whereby firms can liquefy their accounts receivable, essentially selling them for cash.

  Explain and evaluate your results as they pertain to

part 1in millionsyear 1year 2year 3sales347343930442680cost of goods sold335503785240648net

  Design a swap that will net a bank

Design a swap that will net a bank, acting as intermediary, 50 basis points per annum. Make the swap equally attractive to the two companies and ensure that all foreign exchange risk is assumed by the bank.

  Rewrite a networking email

Imagine that your friend, Ron, asks you to review a draft networking email before he sends it. His goal is to get a summer internship in the marketing department of the company. What advice would you give to your friend? If you were Ron, how would..

  Business benefits of analyzing customers purchase data

What are the business benefits of analyzing customers purchase data and constructing behavioral profiles?

  Math the list a to list b

Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most.

  Compensating balance sufficient

A. Is your compensating balance sufficient to cover your service charges? If not, how much additional money do you owe the bank? B. What minimum compensating balance would cover your 450 service charge?

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