Which stock has the highest capital gains yield

Assignment Help Financial Management
Reference no: EM131060891

-Chapman Tech is expected to pay a$1.20 dividend at the end of the year. The required return on chapmans stock is 11% and its dividend is expected to grow at a constant rate of 7% per year.

-Rust Petroleum is expected to pay a $1.50 dividend at the end of the year. RP's dividend yield and and capital gains yield both equal 6%

-Schubert's Fabrics current stock price is $15 per share, Its required return is 13%, and its dividend yield is 8%

1) which stock has the highest dividend yield (DY)?

2) which stock has the highest capital gains yield(CGY)?

Reference no: EM131060891

Questions Cloud

Dividend out in equal quarterly installments to shareholders : Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current dividend once a year and then pays this dividend out i..
Calculate the maximum bending stress smax in the strip : By what percent does the stress increase or decrease if the thickness of the strip is increased by 1/32 in.?
Roles in venturing into new business markets : Describe the term institution in business and explain its roles in venturing into new business markets and how weak institution can act as barrier to new entry.
Project requires an initial cash outlay : A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for 9 years. The cost of capital is 10%. What is the project’s NPV? Show your work.
Which stock has the highest capital gains yield : Chapman Tech is expected to pay a$1.20 dividend at the end of the year. The required return on chapmans stock is 11% and its dividend is expected to grow at a constant rate of 7% per year. which stock has the highest dividend yield (DY)? which stock ..
What is the probability distribution of the stock price : What is the probability distribution of the stock price at the end of 2 years? ½ years? ¼ years? Dt years?
How they spurred the development of aviation technology : Summarize the military aspects of aviation during this period. Compare this period of tension with the actual wars in the twentieth century and how they spurred the development of aviation technology.
Organizational culture of the company : Create a research paper that discusses how one company (of your choice) illustrates social responsibility in its environment. Discuss what leadership does to promote social responsibility and how this ties to ethics and the organizational culture of..
Determine the plastic moment mp for a beam : Determine the plastic moment MP for a beam having the cross section shown in the figure if σY= 210 MPa.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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