What is the expected capital gains yield and dividend yield

Assignment Help Financial Management
Reference no: EM131305026

The next dividend payment by Halestorm, Inc., will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. The stock currently sells for $37 per share. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Dividend yield % What is the expected capital gains yield? (Enter your answer as a percent.) Capital gains yield %

Reference no: EM131305026

Questions Cloud

Can you provide a consistent explanation for them : What is a hedge fund?-  Are these three facts contradictory, or can you provide a consistent explanation for them?
What advantages might customers gain : What advantages might automobile dealers gain from using a finance company, rather than a bank, to finance their customers' purchases? What advantages might customers gain?
Which are the three most critical issues of given reading : Which are three most CRITICAL ISSUES of this reading? Please explain why? And discuss in great detail. Which are three most relevant LESSONS LEARNED of this reading? Please explain why? and discuss in great detail.
Prepare the statement of retained earnings : This is a DIFFERENT COMPANY. Using the trial balance below, complete the Multi-Step Income Statement and prepare the Statement of Retained Earnings and Classified Balance Sheet on the pages which follow. To get full credit you must include all cri..
What is the expected capital gains yield and dividend yield : The next dividend payment by Halestorm, Inc., will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. The stock currently sells for $37 per share. What is the dividend yield? Dividend yield % What is the..
Explore traffic behavior when designing a network : Do some research regarding TCP selective ACK (SACK). Find out if the operating system (OS) on your computer uses it by default and, if not, if there's a mechanism for configuring the OS to use it.
Which are three most critical issues of the business case : Which are the three most Critical Issues of this Business Case? Please explain why? and analyze, and discuss in great detail. Which are the three most relevant Lessons Learned of this Business Case?
Expected to grow at an exceptionally high rate : Apple Computer Incorporated is expected to grow at an exceptionally high rate over the next 3 years due to various new project launches. Computer paid a $2.12 dividend yesterday (D0=$2.12) and the stock is valued according to a required rate of retur..
List major data stores and user communities : What additional questions would you ask Genome4U's founder about this project? Who besides the founder would you talk to and what questions would you ask them?

Reviews

Write a Review

Financial Management Questions & Answers

  Rate trading at a premium or discount relative to spot rate

Assume that interest rate parity holds and that 90-day risk-free securities yield 3% in the United States and 3.6% in Germany. In the spot market, 1 euro equals $1.38 dollar. Is the 90-day forward rate trading at a premium or discount relative to the..

  About the usa tax rule

In 2014, Bob, a single individual, provided support for his 90 year old mother who did not live with him. In 2014, Bob had Agi of $300000 consisting of wages of $200000 and interest income of $100000. The wage income had federal withholding of $40000..

  Default always occur half way through a year

Assume that the default probability for a company in a year, conditional on no earlier defaults is X and the recovery rate is R. The risk-free interest rate is 5% per annum. Default always occur half way through a year.

  About the lease versus buy

Big Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. The loan would have an interest rate of 16%. What is the NAL of the lease?

  What would the loan balance be in five years

Say that you purchase a house for $210,000 by getting a mortgage for $185,000 and paying a $25,000 down payment. If you get a 15-year mortgage with a 6 percent interest rate, what are the monthly payments? What would the loan balance be in five years..

  Explain roles of limited liability corporations

Write a 700- to 1,050-word paper in which you explain roles of limited liability corporations, limited liability partnerships, and Class C Corporations. If you were establishing your own business, under what circumstances would you choose one instead..

  Risk-free interest rate

The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $140 per share for months, and you believe it is going to stay in that range for the next 6 months. The price of a 6-month put option with an exercise price of $14..

  Sporting goods merchandise on account from various vendors

Andrea Sampri Sporting Goods Store purchases sporting goods merchandise on account from various vendors. The terms of the purchase are 2/10, n/30. The delivery date and invoice date is May 15, 2015. The amount of the total amount of the invoice is $1..

  Coupon rate needs to be set on this bond with warrants issue

A company wishes to issue a 10-year bond. To lower it's cost of debt, the company attaches 25 warrants to each bond. Each warrant has a strike(EG exercise) price of $25 and 5 years until expiration. What coupon rate needs to be set on this bond with ..

  Millbridge earns four percent on its idle cash

Millbridge Hospital buys its supplies in bulk and has recently switched vendors. The first purchase Millbridge made was for 500 boxes of gauze at $3.46 a box. The purchase had payment terms of 2/15 N/30. Millbridge earns four percent on its idle cash..

  Financing a new project with new equity will reduce earnings

During recent years your company has made considerable use of debt ?nancing, to the extent that it is generally agreed that the percent debt in the ?rm's capital structure is too high.

  What is the risk-free rate

Consider the CAPM. The expected return on the market is 13%. The expected return on a stock with a beta of 1.5 is 18%. What is the risk-free rate?

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