User Account

All Pages

What is this stock''s expected total rate of return

Assignment Help Finance Basics
Reference no: EM131102304

You buy a share of The Ludwig Corporation stock for $21.40. You expect it to pay dividends of $1.07 $1.1449, and $1.2250 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $26.22 at the end of 3 years.

a. Calculate the growth rate in dividends.

b. Calculate the expected dividend yield.

c. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to get theexpected total rate of return. What is this stock's expected total rate of return?

Reference no: EM131102304

Questions Cloud

Who do you sue the vendor of the ehr and the physician : What happens when evidenced based medicine a protocol within the EHR comes up, a physician overrides it, the patient has an event, who do you sue, the vendor of the EHR, the Physician, the Entity or all three?
What do we mean when we say that financial accounting : What do we mean when we say that financial accounting information is "general-purpose?
Business use of computers : What are several important computer hardware developments that you expect to happen in the next ten years. How will these affect the business use of computers? Please provide references and explanation.
What do you think about the electronic health record : What do you think about the Electronic Health Record and the incentives attached to have it in place. For physicians who see patients they will receive thousands, now that is to help recover the costs. What about academic departments who have se..
What is this stock''s expected total rate of return : Calculate the growth rate in dividends. Calculate the expected dividend yield. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to get theexpected total rate of return. What ..
What voice recognition such as dragon naturally speaking : What about Voice Recognition such as Dragon Naturally Speaking, it gets better as you continue to use it, so out of a 1,000 word passage, it get's 11 words wrong or has a 98.9% accuracy rate. What if you are a Radiologist and you Powerscribe recog..
Calculate the historical growth rate in earnings : Calculate the historical growth rate in earnings. Calculate the next expected dividend per share, D1. Assume that the past growth rate will continue. What is Radon's cost of equity, rs?
Computing the plant level : Why might a firm operating with one plant achieve MEPS and yet not be large enough to achieve MES? (Clue: are all economies of scale achieved at plant level?
Relationship between the theory and the behavior : Provide an example of a situation that demonstrates the relationship between the theory (Rotter and Mischel's: Cognitive Social Learning Theory) and the behavior.

Reviews

Write a Review

Finance Basics Questions & Answers

  How much of this return came from the dividend and how much

yesterday september 22 2012 wireless logic corp. wlc paid its annual dividend of 1.25 per share. because wlcs financial

  Traditional financial and management evaluation ratios

traditional financial and management evaluation ratios

  Break-even point

K-Henry's Dull Diner has a contribution margin ratio of 16%. If fixed costs are $176,800, how many dollars of revenue must K-Henry's generate in order to reach the break-even point?

  Define and explain the impact of marginal dollar principal

Define and explain the impact of Marginal Dollar Principa

  Select a public company in the aviation industry and answer

Please select a public company in the aviation industry and answer the following questions after review the company's 10K report: Using your company's consolidated balance sheet (statement of financial position): Determine the three largest assets. B..

  Computing the firm''s price-earnings ratio

Computing the firm's price-earnings ratio and the company has 312,490 shares outstanding

  How much insurance does the company carry

If a company pays an annual premium of $6,000 and the insurance company charges $40 per thousand dollars of insurance, how much insurance does the company carry?

  Journal entries and calcutaions for asset sales

An asset that was purchased in Feb. 2008 for $25,000 has been depreciating through straight line value method for the past 4 years.

  Which of following is one of the way that such a transaction

One way Enron manipulated its financial statements was to sell assets at inflated prices to other firms, while giving a promise to buy back those assets at a later date. The incoming cash was recorded as revenue, but the promise to buy back the as..

  How would you respond to the following comments

How would you respond to the following comments?

  Compute the effects of these investments on potter companys

the following data are from the annual report of francisco company a specialized packaging manufactureryear 6year 7year

  What is martha cost of equity

Martha's Pancake House, Inc. just paid its annual dividend of $0.80 a share. The stock has a market price of $13.00 and a beta of 1.04. The return on U.S. Treasury bills is 2.5 percent and the market risk premium is 7.3 percent. What is Martha's c..

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