What is the expected capital gains yield-dividend yield

Assignment Help Financial Management
Reference no: EM131045695

The next dividend payment by Wyatt, Inc., will be $3.25 per share. The dividends are anticipated to maintain a growth rate of 7.0 percent, forever. Assume the stock currently sells for $50.10 per share.

What is the dividend yield? %

What is the expected capital gains yield? %

Reference no: EM131045695

Questions Cloud

Two bond issues outstanding-paying the same annual interest : Crawford inc has two bond issues outstanding, both paying the same annual interest of $110, called series A and series B. Series A has a maturity of 12 years, whereas series B has a maturity of 1 year. Why does the longer term (12 year) bond fluctuat..
Give a detailed sketch of this algorithm : For simplicity, assume a perfect timeout mechanism that detects a lost packet exactly 1 RTT after it is transmitted.
What will cash flows for project-before-tax operating costs : You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $60,000. The truck falls into the MACRS 3-year class, and it will be sold after three years for $20,900. Use of the truck wil..
Corporation engaged in the retail grocery business : Eldon's Super Fresh Stores, Inc., is a corporation engaged in the retail grocery business. William Drexler was the attorney for and the corporate secretary of Eldon's and was also the personal attorney of Eldon Prinzing, the corporation's presiden..
What is the expected capital gains yield-dividend yield : The next dividend payment by Wyatt, Inc., will be $3.25 per share. The dividends are anticipated to maintain a growth rate of 7.0 percent, forever. Assume the stock currently sells for $50.10 per share. What is the dividend yield? % What is the expec..
What would be the effective interest rate : Compensating balance. On January 2, 20X1, Uptown Hospital established a line of credit with First Union National Bank. The terms of the line of credit called for a $400,000 maximum loan with an interest rate of 3 percent. The compensating balance req..
R''s queue size is now irrelevant why : Assume a static timeout value of 2 seconds, that slow start is used on a timeout, and that ACKs sent at about the same time are consolidated. Note that R's queue size is now irrelevant (why?).
Defense of failure of consideration : Donna gives Peter a check for $2,500 in return for a laptop computer. The check is dated December 2. Peter transfers the check for value to Howard on December 14, and Howard deposits it in his bank on December 20.
What is the market rate of return on this stock : The common stock of Eddie's Engines. Inc sells for $37.13 a share. the stock is expected to pay $3.10 per share next year. Eddie's has established a pattern of increasing their dividends by 5.2 percent annually and expects to continue doing so. What ..

Reviews

Write a Review

Financial Management Questions & Answers

  Initial margin and maintenance margin

Eric has just purchased a heating oil contract at $2.05 per gallon. The contract size is 21,000 gallons. Initial margin is $6,075; maintenance margin is $4,500. If the price of heating oil is $2.15 when the contract expires, Eric's profit or loss is?..

  Firm is considering investing in a project with cash flows

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the pr..

  Dividend-growth model-growth in dividends will be constant.

The dividend-growth model may be applied only if it is assumed that the growth in dividends will be constant. As the price of stock rises, the probability a convertible bond will be called declines.

  Dividend is expected to grow at rate

Pharsalus Inc. just paid a dividend (i.e., D0) of $ 1.37 per share. This dividend is expected to grow at a rate of 4.6 percent per year forever. The appropriate discount rate for Pharsalus's stock is 15.4 percent. What is the price of the stock?

  What recent evidence about the performance

What recent evidence about the performance of ACOs can you find? Are they growing? Are they saving money? Do enrollees seem to like the care they get? Is the quality of care good?

  About the loan amortization

Assume that your aunt sold her house on December 31, and to help close the sale she took a second mortgage in the amount of $15,000 as part of the payment. The mortgage has a quoted (or nominal) interest rate of 6%, but it calls for payments every 6 ..

  The design of the federal reserve system

The design of the Federal Reserve System was to ____. Banks that are required to join the Federal Reserve System are ___ banks and those banks that may elect to join are ___ banks. ____ costs can hinder the flow of funds to people with productive inv..

  About the sales increase

Pierce Furnishings generated $4 million in sales during 2012, and its year-end total assets were $2.6 million. Also, at year-end 2012, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,..

  What is the companys cost of common equity

Koshun Company just paid a dividend of $0.90. The company's common stock currently sells at a price of $30.00 and its dividend grows at a constant rate of 7.00%. What is the company's cost of common equity (RE)?

  Assume that each stock is equally weighted in each portfolio

Create two stock portfolios, denoted A and B, each of which consists of ten (10) individual common stocks. Assume that each stock is equally weighted in each portfolio. Stocks in portfolio A must be from the same industry (at least the first two digi..

  Large non-profit health relief organization

Choice five - your role is as the chief administrative officer of a large non-profit health relief organization. After reviewing the course concepts you will identify several issues that directly connect to the written assignment. You are in the role..

  Security analyst-prestopino products financial statements

A security analyst obtained the following information from Prestopino Products' financial statements: Retained earnings on its balance sheet at the end of 2011 were $700,000, but retained earnings at the end of 2012 had declined to $320,000. The comp..

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