What is the expected dividend yield

Reference no: EM131183487

Lucas Clinic's last dividend (D0) was $1.50. Its current equilibrium stock price is $15.75, and its expected growth rate is a constant 5 percent. If the stockholders' required rate of return is 15 percent, what is the expected dividend yield and expected capital gains yield for the coming year?

Reference no: EM131183487

Questions Cloud

Calculate the change in the entropy : a) Calculate the work that must be done at 298.15 K and 1.00 bar against the atmosphere for the production of CO2(g) and H2O(g) in the combustion of 10.50 mol C6H6(l). (b) Calculate the change in the entropy of the system due to expansion of the pr..

Determine the value of the company''s stock : Better Life Nursing Home, Inc., has maintained a dividend payment of $4 per share for many years. The same dollar dividend is expected to be paid in future years. If investors require a 12 percent rate of return on investments of similar risk, det..

All price changes are due to exchange rate changes : In 1983 the Japanese yen-U.S. dollar exchange rate was 240 yen per dollar, and the dollar cost of a compact Japanese-manufactured car was $8,250. Suppose that now the exchange rate is 108 yen per dollar.

Expansion of the product gases : (a) Calculate the work that must be done at 298.15 K and 1.00 bar against the atmosphere for the production of CO2(g) and H2O(g) in the combustion of 10.50 mol C6H6(l). (b) Calculate the change in the entropy of the system due to expansion of the ..

What is the expected dividend yield : Lucas Clinic's last dividend (D0) was $1.50. Its current equilibrium stock price is $15.75, and its expected growth rate is a constant 5 percent. If the stockholders' required rate of return is 15 percent, what is the expected dividend yield and e..

Identify and describe social psychological phenomena : Examine at least three (3) evidence-based strategies from each of the selected articles that could help the individuals in each article enhance their adjustment skills.

Concentration of hi to drop : i) What is the half-life (in days) of this reaction when the initial HI concentration is 0.100 M? ii) How many days does it take for the concentration of HI to drop from 0.200 M to 5.00×10-2 M?

What will be the company''s stock price in three years : If the firm's last dividend (D0) was $2.00, and the investors' required rate of return is 15 percent, what will be the company's stock price in three years?

Consider person with following utility function over wealth : Consider a person with the following utility function over wealth: u(w) = ew, where e is the exponential function (approximately equal to 2.7183) and w = wealth in hundreds of thousands of dollars.

User Account

All Pages