What is the implied dividend growth rate for this company

Assignment Help Financial Management

Reference no: EM13870667

KFC is expected to pay a $10 dividend at the end of the year. If the required return on the stock investment is 20%, and the stock currently sells for $100.00,

What is the implied dividend growth rate for this company? (Round off the answer to two decimal places).

Reference no: EM13870667

Questions Cloud

Bonds is trading at premium : Which of the following bonds is trading at a premium?

What is the market price of this preferred stock today : High Towers has an issue of preferred stock outstanding with a par value of $200. It pays an annual dividend equal to 10 percent of par value. If the required return on High Towers preferred stock is 5 percent, and if the company pays its next divide..

Manages endowments and trusts for large clients : Gordon Powles works for Creighton Capital Management and manages endowments and trusts for large clients. The fund invests most of its portfolio in S&P 500 stocks, keeping some cash to facilitate purchases and withdrawals. A colleague of Powles, Mari..

How would you calculate the spot rate of bond : How would you calculate the spot rate of bond?

What is the implied dividend growth rate for this company : KFC is expected to pay a $10 dividend at the end of the year. If the required return on the stock investment is 20%, and the stock currently sells for $100.00, What is the implied dividend growth rate for this company?

What will happen to the price of the bond : A $5000 bond with a coupon rate of 6.4% paid semi annually has four years to maturity and a yield to maturity of 6.2%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?

Bond outstanding with face value : The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semi annually.

Growth rate in dividends-what is the current share price : Apocalyptica Corporation is expected to pay the following dividends over the next four years: $ 3, $ 10, $ 15, and $ 3.08. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends, forever. If the required return on t..

Why might wendys boss prefer straight-line depreciation : Wendy's boss wants to use straight-line depreciation for the new expansion project because he said it would give higher net income in earlier years and give him a larger bonus. The project will last 4 years and requires 1, 700,00 of equipment. What w..

User Account

All Pages