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Dividend Yield

After Tax Yield and Tax Liability

1. An investor recently purchased a corporate bond which yields 9 percent. The investor is in the 36 percent combined federal and state tax bracket. What is the bond's after-tax yield? 2. Corporate bond issued by Johnson Corporation currently yield 8 percent. Municipal bonds of equal risk currently yield 6 percent. At what ta


I need help with this problem. I know the answer but I don't see how they got it. a) A company plans to increase its dividend at a rate of 5% per year indefinitely, what will be the dividend per share in 10 years? $6.52 b) If the dividend per share is expected to be $5.87 per share at the end of 5 years at what annual rate

Dividend Yield Problems

1. Assume the stock is selling at $30.29. What would the stock price be if its dividends were expected to have zero growth? Now assume the company is expected growth of 30% for the next 3 years, then to return to its long-run constant growth rate of 6%. What is the stock's value under these conditions? 2. Is the stock pri

Having trouble with a question in Finance

Problem entails - finance question of dividend yields and how much to pay for a stock? Question 1 ABC Inc. has an expected yield of 18% . It anticipates paying the same dividend of $1.10 for four more years, after which the dividend will grow at 7% a year indefinitely. Based on the dividend valuation (Capitalization) mode