What is the stock expected capital gains yield

Assignment Help Finance Basics
Reference no: EM132611509

McGregor Inc.'s stock has a required rate of return of 10.50%, and it sells for $67.50 per share. McGregor's dividend is expected to grow at a constant rate of 7.00% per year. What is the expected year-end dividend, D1?

The Nikko Company's last dividend was $1.50. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If Nikko's required rate of return is 11%, what is the company's current stock price?

A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 12.5%, and the expected constant growth rate is g = 8.5%. What is the current stock price?

Rentz RVs Inc. (RRV) is presently enjoying relatively high growth because of a surge in the demand for recreational vehicles. Management expects earnings and dividends to grow at a rate of 25% for the next 4 years, after which high gas prices will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last dividend, D0, was $1.25. RRV's beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?

If D1 = $1.50, g (which is constant) = 6.5%, and P0 = $56, what is the stock's expected capital gains yield for the coming year? What is its dividend yield? What is its total yield?

Show all formula and work please

Reference no: EM132611509

Questions Cloud

Estimate and interpret the se of the sample mean : Estimate and interpret the SE of the sample mean to two decimal places.
Determine how much higher or lower will net operating income : Determine How much higher or lower will net operating income be if the under applied or over applied overhead is allocated to Work in Process, Finished Goods
Strong influence on internal team dynamics : According to the Sarin and O'Connor (2009) article, certain style and goal structures of team leaders have a strong influence on internal team dynamics
Estimate and interpret the se of the sample mean : Given a sample size of 30, estimate and interpret the SE of the sample mean to two decimal places.
What is the stock expected capital gains yield : If D1 = $1.50, g (which is constant) = 6.5%, and P0 = $56, what is the stock's expected capital gains yield for the coming year? What is its dividend yield? Wha
Compute the accrual accounting rate of return : Compute the accrual accounting rate of return based on the net initial investment. Assume the straight-line depreciation method is applied
What should Ball Co recognize for this lease : Ball Co. uses straight-line depreciation. What should Ball Co. recognize for this lease in journal entries on 1/1/2010, 12/31/2010, and 12/31/2011
How do make an income statement for the year : Assume that the company uses absorption costing, Make an income statement for the year and Compute the unit product cost.
Describe the big effects on domestic markets : International trade can have big effects on domestic markets. For both an import good and an export good (in other words, address each bulleted item below).

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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