Dividend yield and equity cost of capital

Related BrainMass Solutions

• Finance: Dividend Yield and the Equity Cost of Capital

  Dividend Yield = annual dividend per share/current stock's price per share Dividend Yield = $0.88/$22.00 Dividend Yield = 4% Growth = ($23.54 - $22.00)/$22.00) = 7.00% Equity cost of capital = dividend yield + growth Equity cost of capital =

• Constant Growth Rate

  Dividend Yield = D1/P0 = 0.88/22 = 4% Equity cost of capital = Dividend yield + capital gains yield Capital gains yield = (23.54-22)/22 = 7% Equity cost of capital = 4%+7% = 11% 2. a) Expected growth rate of dividends = Equity cost of capital -

• Dividend-Discount Model and Decomposing Equity Cost of Capital

  How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much capital gain?

• Constant growth valuation formula for stocks

  Capital gains yield= 6% (Given) Using the Dividend Discount (Constant Growth) Model Po= D1/ (rs-g) Dividend for next year= D1 = $1.50 Cost of equity= rs= 12.00% growth rate of dividends/earnings

• Dividend yield, capital gains yield of stocks

  The total return = 18% = Dividend yield + capital gains yield The solution calculates capital gains yield and dividend yield of different stocks

• Cost Of Capital: Bond Debt, Preferred stock, Common equity and WACC

  Dividend growth rate is 8% for common stock; expected dividend $1.90 and selling $40 per share. Flotation cost $2.50 per share for preferred stock and $2.20 per share for common stock. Company has kept debt at 50% of assets and equity at 50%.

• Weighted avergage cost of capital for internal and external funds

  yield 7% Bond flotation cost 2% Dividend, expexted common $1.50 Price, common $30.00 Dividend, preferred 5% Flotation cost, preferred 3% Flotation cost, common 4% Corporate growth rate 6% Corporate tax rate 35% a) Calculate the cost of capital

• Annual Incremental Earnings, Cash Flow, and Price Per Share

  How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain? 4. Summit Systems will pay a dividend of $1.50 this year.

• Krell Industries Dividend Calculation

  If Krell is expected to pay a dividend of $.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's dividend yield and equity cost of capital?