What will be next year dividend

Assignment Help Finance Basics
Reference no: EM132403026

Suppose you know that a company's stock currently sells for $75 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what will be next year's dividend?

Reference no: EM132403026

Questions Cloud

What is the required rate of return on the stock : The dividend is expected to grow at 7.56% each year. If the stock is currently selling for $277.01, what is the required rate of return on the stock?
Operations management tool application reflection write-up : Review the tools, concepts, and theories of Operation Management where you discuss which course tools, concepts,
What is abc cost of equity after transaction : Assuming its cost of debt remains at 5%, what is ABC's cost of equity after this transaction?
What is the present value of the maturity cash flow : Given the following semiannual-pay bond:Corporate Bond, non-callable, Matures in 10 years, 5% Annual Coupon, YTM 7%, purchases $1,000 in Face Value.
What will be next year dividend : If it's the company's policy to always maintain a constant growth rate in its dividends, what will be next year's dividend?
What is the probability that a randomly selected car : What is the probability that a randomly selected car will get through the restaurant's drive-through in less than 110 seconds
What will be the dividend in year 5 : Bravo Company just paid an annual dividend of $2.00 per share and has announced that future dividends will increase by 3 percent annually.
Summary of the challenges of the current operational process : Summary of the challenges of the current operational process. Describe the current and expected long-term impact of these challenges if they are not addressed.
What is the size of the special dividend : What is the size of the special dividend that Rockford can pay shareholders instead of the repurchase?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the firm standard deviation

AAA Inc.'s stock has a 40% chance of producing a 30% return, and 60% chance of producing a 5% return.

  Calculate require rate of return

Comfort Shoe Corporation of England has decided to spin off its Tango Dance Shoe Division as a separate corporation in the US. The assets of the Tango Dance Shoe Division have the same operating risk characteristics as those of Comfort.

  Define and explain a constant maturity swap

An interest rate swap has two primary risks associated with it. Identify and explain each risk.- Define and explain a constant maturity swap.

  What is the npv of the expected cash flows from project

What is the NPV of the expected cash flows from this project? Assume a discount rate of 20%.

  Compute for the cost a bond selling to yield 13 after the

compute for the cost a bond selling to yield 13 after the flotation cost but prior to adjustung for the marginal

  What is the time value of money

FIN 370- What is the time value of money? In your answer draw a time line and show how money is discounted back to the present value. Have you ever put money into a savings account or investment account?

  Accumulate the down payment

At a 6% rate of return, how much do you need to save each year to accumulate the down payment? If you need 25%, and the rate of return is 5%, how much do you need to save each year?

  How much money can you borrow at present

How much money can you borrow at present if you repay the lender $1050 in 3 years and the interest rate is 9% per year compounded annually? (SPPWF).

  Examine the simultaneous effects on gross profits

Examine the simultaneous effects on gross profits of varying industry growth rates and 1/2 % increments in Zephyr's market share

  Identify and explain the four factors that influence asset

answer each of the 2 essay questions below with a response that is at least 300 words in length. the total submission

  Derive a demand curve for pizza

Using the following utility schedule, derive a demand curve for pizza. Assume income is $10, the price of each slice of pizza is $1, and the price of each glass of beer is $2. Then change the price of pizza to $2 perslice.

  Evaluate the original price per share

Evaluate the original price per share that the firm sold its single issue of common stock - issue of preferred stock and one issue of common stock outstanding

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