What is the dividend yield-using the constant growth model

Assignment Help Financial Management

Reference no: EM131068613

Company B just paid an annual dividend of $.42 a share. The stock is selling for $18 a share and has a growth rate of 2.2 percent. What is the dividend yield, using the constant growth model?

2.47 percent

2.38 percent

2.33 percent

2.41 percent

Reference no: EM131068613

Questions Cloud

Write a one-year call option-risk-free rate : You buy a share of stock, write a one-year call option with X = $20, and buy a one-year put option with X = $20. Your net outlay to establish the entire portfolio is $18.60. What must be the risk-free interest rate? The stock pays no dividends.

Multiplier effect from the inclusion of investment : What is the equilibrium real GDP without investment? What is the multiplier effect from the inclusion of investment? What is the average propensity to consume at equilibrium real GDP?

What is the actual percentage change in the bond price : Consider a 6% coupon bond making annual payments if it has 3 years until maturity and has a yield to maturity of 8%. (show work) What is the duration of this bond? If the market yield increases by 80 basis points, what is the actual percentage change..

What is cost of equity capital : Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 8 percent. There is no corporate tax. Requirement 1: What is Crosby’s cost of equity capital?

What is the dividend yield-using the constant growth model : Company B just paid an annual dividend of $.42 a share. The stock is selling for $18 a share and has a growth rate of 2.2 percent. What is the dividend yield, using the constant growth model?

What is the anticipated sample size : What is the anticipated sample size: How many will be included? How will you determine this number?

What is the average monthly return : The past five monthly returns for PG Company are 3.25 percent, -.25 percent, 4.65 percent, 6.79 percent, and 4.34 percent. What is the average monthly return?

Calculate the NPV of the project-IRR and MIRR : The cost of the project is $1,200,000, which will be an immediate expense. The project is expected to produce cash flows in year 3 (end of Year) of $400,000 and this cash flow will grow at 15% for the following 5 years. At the end of the 6th year a c..

What is the percentage price change of these bonds : Bond J is a 5.8 percent coupon bond. Bond K is a 9.8 percent coupon bond. Both bonds have 15 years to maturity and have a YTM of 7.6 percent. If interest rates suddenly rise by 2.2 percent, what is the percentage price change of these bonds?

User Account

All Pages