Describe the dividend yield method, Financial Management

Assignment Help:

Q. Describe the Dividend Yield Method?

Dividend Yield Method: - This process is based on the assumption that when an investor invests in the equity shares of a company he expects to get a payment at least equal to the rate of return prevailing in the market. The equation is:

K_e = DPS/ MP X 100

Ke = Cost of Equity Capital

DPS = Dividend Per Share

MP = Market Price Per Share

Related Discussions:- Describe the dividend yield method

Identify following belong income statement or the balance, Identify whether...

Identify whether the following items belong on the income statement or the balance sheet. a. Interest Expense IS l. Cash BS b. Prefer

Methods of estimating working capital, net current asset forecast method

net current asset forecast method

Asset Securitization Structures (Excel help), #questAs an assistant vice pr...

#questAs an assistant vice president at a regional bank, your boss has tasked you to acquire $100 million of residential mortgages to be securitized in a pass-through MBS. There mu

Lockbox system, how do we compute for benefits can derrive out of using loc...

how do we compute for benefits can derrive out of using lockbox system?

Illustration of valuation using multiple discount rates, Illustration ...

Illustration Let us assume that Vishal Mehta & Co., (from Illustration 1) is using the following discounting rates in place of one rate:

Tests for consistency, Tests for Consistency The consistency of the ind...

Tests for Consistency The consistency of the index numbers have been tested over the years. The most important of these tests are: The time reversal test The

Misconceptions of securitization, There are some misconceptions about...

There are some misconceptions about securitization: Poor quality originators end up in securitizing their assets. A bank's best mortgage

What are the factors of debt securities, What are the factors of debt secur...

What are the factors of debt securities A legal agreement, known as a trust deed, is drawn between security holders and company issuing the debt securities. Every security issu

Define the explicit cost of capital, Define the Explicit cost of capital ...

Define the Explicit cost of capital Explicit cost of retained earnings that involve no future flows to or from firm is minus 100 per cent. This must not tempt one to infer that

What do you mean by a hedge fund, Q. What do you mean by a Hedge Fund? ...

Q. What do you mean by a Hedge Fund? A Hedge Fund is a fund established by one or else several partners with net worth of at least $1 million (although this maybe falling). It

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages