User Account

All Pages

What is the next dividend per share

Assignment Help Financial Management
Reference no: EM132003396

Suppose you know a company's stock currently sells for $35 per share and the required return on the stock is 0.13. You also know that the required return is evenly divided between the capital gains yield (G) and the dividend yield (D1/P0) (this means that if the required retun is 9%, the capital gains yield is 4.5% and the dividend yield is 4.5%). If it's the company's policy to always maintain a constant growth rate in its dividends, what is the next dividend per share? Answer with 2 decimals (e.g. 1.23)

Reference no: EM132003396

Questions Cloud

Advantages and disadvantages of the functional structure : What are the advantages and disadvantages of the functional structure? How does a process focus overcome some of the disadvantages?
Corporate strategies of horizontal and vertical integration : Compare the corporate strategies of horizontal and vertical integration. Do you think that one has an advantage over the other? Why.
Effective interest rates from the perspective of individual : Describe the likely importance of the difference between nominal and effective interest rates from the perspective of an individual:
How the given assumptions affect your own self-identity : Assumptions others may make about you based on the diverse groups you belong to. How these assumptions affect your own self-identity.
What is the next dividend per share : If it's the company's policy to always maintain a constant growth rate in its dividends, what is the next dividend per share?
True about the change in the price of stock : The growth rate of a stock, g, represents the stock's. Which of the following is true about the change in the price of a stock?
Economy in weighting international index portfolio : What are the advantages and disadvantages of using the market capitalization of each economy in weighting an international index portfolio?
What is your effective interest-rate of return : How much total amount of dollars do you have from collecting the coupon and selling the bond? What is your effective interest-rate of return?
The arithmetic and geometric average returns for stock : What are the arithmetic and geometric average returns for a stock with annual returns of 9 percent, 12 percent, -8 percent and 19 percent?

Reviews

Write a Review

Financial Management Questions & Answers

  Create an eight stock global portfolio with us companies

Create an eight stock global portfolio (equally weighted) with four US companies and the four foreign companies replacing the US companies.

  Believes the growth potential for the roller blade market

Since Ben Holt, Blades’ chief financial officer (CFO), believes the growth potential for the roller blade market in Thailand is very high,

  A federal reserve bank operating independently

What are the arguments for and against a Federal Reserve Bank operating independently?- In the modern Fed, would it be possible for a Reserve Bank to act as the New York Fed did in 1929?

  Heat loss through exterior walls of her warehouse will cost

A small business owner estimates that the heat loss through the exterior walls of her warehouse will cost approximately $4,000 per year. A local company is offering insulation that can reduce the heat loss by 80%, with an installation cost of $17,000..

  Explain the payback period method

Bayleaf Inc. is considering the purchase of a machine that costs $200,000. Installation costs are $20,000 which are going to be deemed an “expense” when the installation is done. List all the Cash flows associated with the NPV calculation of this pro..

  What will the earnings per share be after dividend is paid

Delaware Trust has 450 shares of common stock outstanding at a market price per share of $27. Currently, the firm has excess cash of $400, total assets of $28,900, and net income of $1,320. The firm has decided to pay out all of its excess cash as a ..

  What is the standard deviation of the rate of return

What is the standard deviation of the rate of return on this investment?

  Economy can experience high growth and normal growth

Assume that the economy can experience high growth, normal growth, slow down or severe recession. Under these conditions you expect the following stock market returns for the coming year: compute the standard deviation of the return as a percentage o..

  What is the annual opportunity cost of a checking account

What is the annual opportunity cost of a checking account that requires a $300 minimum balance to avoid service charges? Assume an interest rate of 3%.

  Find the uniform equivalent amount

find the uniform equivalent amount, A, at the end of each of the eight six-month periods if the nominal interest rate is 20% compounded semiannually.

  About the random number generation tool

Which of the following is true about the Random Number Generation tool?

  Using best term-asset-only-asset-liability management

Fill in the blank for each definition using the best term - Asset-Only ‘AO’, Asset-Liability Management ‘ALM’, Tactical Asset Allocation ‘TAA’, & Strategic Asse

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd