What is the required return on the companys stock

Assignment Help Financial Management

Reference no: EM13907123

Bruer, Inc., is expected to maintain a constant 6.05 percent growth rate in its dividends, indefinitely.

Required:

If the company has a dividend yield of 4.55 percent, what is the required return on the company’s stock? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.161).)

Required return %

Reference no: EM13907123

Questions Cloud

What is the current macroeconomic situation in the u.s. : What fiscal policies and monetary policies would be appropriate at this time? Please help me explain data trends on unemployment, inflation, GDP growth, expasionary fiscal policy tools.

What is the effective interest per year : George bought a car for $26,500. He made a down-payment of $4,500 and financed the rest on a 5-year term with a monthly payment of $575. What is the effective interest per year?

Analyze the role that e-commerce plays in scm : Explain how SCMs allow healthcare organizations to become more competitive. Analyze the role that e-commerce plays in SCM. Support your discussion with appropriate research and examples

Prepare a selling expense budget for the month of june : Refer to information from QS 22-10. Grace pays a sales manager a monthly salary of $ 6,000 and a commission of 8% of camera sales (in dollars). Prepare a selling expense budget for the month of June.

What is the required return on the companys stock : Bruer, Inc., is expected to maintain a constant 6.05 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.55 percent, what is the required return on the company’s stock?

Is fed controlled by congress or executive branch of govt. : Is the Fed controlled by Congress or the executive branch of the government? What are the three tools the Fed has available to influence the economy? What can it do today to get the economy to recover?

Bonds two years ago at coupon rate : Night Hawk Co. issued 17-year bonds two years ago at a coupon rate of 10.1 percent. The bonds make semiannual payments. If these bonds currently sell for 97 percent of par value, what is the YTM? (Do not include the percent sign (%). Enter rounded an..

Cash sales are normally : Prepare a schedule of cash receipts for September.

Additional luggage results in erroneousn amount : The application used to calculate the cost of carrying additional luggage results in erroneousn amount, if the weight of the luggage is a fractional number. Help the development team modify the code snippet so that the cost of carrying additional ..

User Account

All Pages