What is the stock required rate of return

Assignment Help Financial Management

Reference no: EM131309791

Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $3 at the end of each year. The preferred sells for $55 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required return equal to the expected return)? Round the answer to two decimal places.

Reference no: EM131309791

Questions Cloud

What is the expected rate of return on stock : Steady As She Goes Inc. will pay a year-end dividend of $3.10 per share. Investors expect the dividend to grow at a rate of 5% indefinitely. If the stock currently sells for $31 per share, what is the expected rate of return on the stock? If the expe..

What part of trend-lines value is due to assets in place : Trend-Line Inc. has been growing at a rate of 4% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $6 per share. If the market expects a 12% rate of return on Trend-Line, at what price must it be selling?..

Contrast the leadership model of hershey and blanchard : Compare and contrast the leadership model of Hershey and Blanchard with the Tannenbaum and Schmidt model. How are they similar and how are they different?

Demonstrate a significant application of technical elements : Your final project in this class is required to be more extensive than the weekly lab projects. Your project should demonstrate a significant application of technical elements and also demonstrate originality and creativity.

What is the stock required rate of return : Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $3 at the end of each year. The preferred sells for $55 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required..

What is the maximum directly addressable memory capacity : SCO 104 Computer Organizations and Architecture I- What is the maximum directly addressable memory capacity (in bytes)? How many bits are needed for the program counter and the instruction register?

Provide a summary of movie discussing merits of film : Watch the movie "Pay It Forward" with Kevin Spacey and Helen Hunt.- Provide a one page summary of the movie discussing the merits of the film and its life implications.

What must be the expected growth rate of company dividends : Arts and Crafts, Inc., will pay a dividend of $3 per share in 1 year. It sells at $30 a share, and firms in the same industry provide an expected rate of return of 12%. What must be the expected growth rate of the company’s dividends?

Assignment choice-staffing case study : After reading the case study, evaluate the design and implementation of the recruiting and selection process (the case will describe a number of ineffective practices, a mismatch between job description and selection assessments, issues around adv..

User Account

All Pages