What is the current dividend per share

Assignment Help Financial Management

Reference no: EM13726616

Suppose you know that a company’s stock currently sells for $51 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

Reference no: EM13726616

Questions Cloud

What stock price would you consider appropriate : The Sleeping Flower Co. has earnings of $2.30 per share. The benchmark PE for the company is 16. What stock price would you consider appropriate? (Round your answer to 2 decimal places. (e.g., 32.16)) Stock price $ What if the benchmark PE were 19? (..

What is the stock price for each company : Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.30 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company’s stock is 7 percent, 10 percent, and 13 percent, respectiv..

Issue of preferred stock outstanding : Lane, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue currently sells for $91 per share, what is the required return?

What are the weekly earnings for weekly sales : Shoe sales people earn a base salary of $400 a week with a commission of 10% on every sale above $6000 during that week. What are the weekly earnings for weekly sales of $4k and for weekly sales of 10k? SHOW WORK

What is the current dividend per share : Suppose you know that a company’s stock currently sells for $51 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it..

What is the required return on the companys stock : Keenan Co. is expected to maintain a constant 4.2 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.0 percent, what is the required return on the company’s stock?

What is the present value of a zero-coupon bond : What is the present value of a zero-coupon bond with five years maturity, a nominal value of $1,000 and a discount rate of 6%?

Value of stock according to the dividend discount model : Stock A has an expected dividend of $1.30 payable as of two years from now (i.e. it is not expected to pay any dividends over the first two years). After that, dividends are expected to grow at an annual rate of 1% forever. If the discount rate is 5%..

Calculate the relevant cash flow : Depreciation (of existing machinery): $10,000. Calculate the relevant cash flow for this firm for the year 2014.

User Account

All Pages