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Dividend Yield

Capital Gains Yield

A company just paid an annual dividend of $2.25 per share. The same company has a policy whereby it increases its dividend by 2 percent annually. What is the computation for the capital gains yield if the current stock price is $31 a share?

Hastings company problem

Please help with the following problem. Provide step by step calculations. Hastings company's current dividend is $2 per share (D0=$2). The dividend is expected to grow at a constant rate of 9 percent a year for the next 2 years (t=1 and t=2) and it will be 4 percent thereafter (from t=3 to t=infinity). The risk-free rate is

Dividend yield on common stock

Calculate dividend yield on common stock Market price per share $30.00 Earnings per share 2.00 dividends per share 1.00 Investor's cost per share 20.00 I really don't know where to start, can you explain the dividend yield

Supernormal Growth Dividend: Janicek Corp.

Janicek Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next 3 years, 17 percent over the following year, and then 3 percent per year indefinitely. The required return on this stock is 13 percent, and the stock currently sells for $60 per share. The projected dividend for the

Value of Shares & Capital Gains/Dividend Yields

ABC Corp is expected to pay a dividend next year of 1.75 per share. Yearly profits for ABC Corp are expected to grow at a rate of 15% for the following 2 years (after next year) and then at 2% per year indefinitely. Because the company has stated that it will maintain its current dividend policy, dividends are expected to grow a

Dividend yield, capital gains yield of stocks

Consider four different stocks,all of which have a required return of 18 percent and a most recent dividend of $4.50 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, 0 percent, and -5 percent per year, respectively. Stock Z is a growth stock that

The DDM Corporation has just paid a cash dividend

1. The DDM Corporation has just paid a cash dividend (D0) of $2 per share. It has consistently increased its cash dividends in the past by 5% per year, and you expect it to continue to do so. You estimate that the market capitalization rate for this stock should be 13% per year. a. What is your estimate of the intrinsic value

Calculate dividend, stock price, dividend yield and capital gains rate.

ABC and Co has come out with an new product, and the world is beating a path to its door. As a result, the firm projects growth of 20 percent per year for four years. By then, other firms will have copycat technology, competition will drive down profit margins, and the sustainable growth rate will fall to 5 percent and remain at

Stock dividend

1. You own 1000 shares of XYZ Corp. and the company is about to pay a 25% stock dividend. The stock currently sells for $100 per share. What will be the number of shares that you hold and the total value of your equity position after the dividend is paid? 2. DCH Industries pays a quarterly dividend of $2 per share. The div

Dividend Policies

Company Y's earnings have been predicted for the next 5 years and are listed below. There are 1 million shares outstanding, determine the yearly dividend per share to be paid if the following policies are enacted? Question 1: constant dividend payout ratio of 40 percent Question 2: stable dollar dividend targeted at 40 perc

Stock Valuation

1) You are offered 2 stocks. The beta of A is 1.4 while the beta of B is 0.8. The growth rates of earnings and dividends are 10% and 5, respectively. The dividends yields are 5% and 7 %, respectively. a) Since A offers higher potential growth, should it be purchased? b) Since B offers a higher dividend yield, should it b

Percentage Return/Dividend Yield

One year ago Mr. Seth invested $10,400 in 200 shares of stock and just received a dividend of $600. Today, he sold the 200 shares at $54.25 per share. a. What is Seth's percentage return? b What is the stock's dividend yield?

North Pole Cruise Lines issued preferred stock many years ago. It carries a fixed dividend of $6 per share. With the passage of time, yields have soared from the original 6 percent to 14 percent (yield is the same as required rate of return). What was the original issue price? What is the current value of this preferred stock?If the yield on the Standard & Poor's Preferred Stock Index declines, how will the price of the preferred stock be affected?

North Pole Cruise Lines preferred stock many years ago. It carries a fixed dividend of $6 per share. With the passage of time, yields have soared from the original 6 percent to 14 percent (yield is the same as required rate of return). a. What was the original issue price? b. What is the current value of this preferred sto

University of Tucumcari (UOT)

Building on your experience in the world of education, you are considering buying a for-profit educational institution, University of Tucumcari (UOT). UOT had earnings of $4.00 per share (at time 0) with a retention ratio of 40%. It has been facing more competition in recent years and anticipates that its growth rate for earni

Dividend Yields Differ on Certain Stocks

What are the dividend yields on the common stock of Duke Energy, Johnson and Johnson and Sara Lee? Why is the common stock dividend yields different? See attached file for full problem description.

Share of stock

Shares of my company sells for $20 per share. 40% of earnings are paid in dividends. What is the dividend yield? Earnings are $100,000 and there are 10,000 shares of stock outstanding. Explain?

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

Dividend

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 Model with constant growth: compute PV of dividend

Using Dividend Model with constant growth, if Krf = 4%, Km = 9%, Beta = 1.3, Do = $3, g = constant 5% for next 3 years, what is the total PV of the dividend stream for the next 3 years? What is the stock's current market value? What is the expected market price of the stock one year from now? Also, show formulas and entries i

What is the stock's value now and expected dividend yield

1. A company's stock is selling at $30.29 (currently). Suppose the company is expected to experience zero growth during the first 3 years and then to resume its steady-state growth of 6% in the 4th year. What is the stock's value now? What is its expected dividend yield and its capital gains yield in year 1 and year 4? 2.

Ratio Analysis for Foggy Ltd and Compo Ltd

Given the attached tables and information on the Foggy Ltd and Compo Ltd companies, complete the following ... (a) Prepare an extract of the Profit and Loss Account for the year ended 31 March 2003 commencing with the operations profits for: i) Foggy Ltd. ii) Compo Ltd. (b) Calculate the following for each company: i) In

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

Dividend Discount Model: Example

Please do not submit any financial statements-just the answers and any calculations. Use the Kellogg Company 10-Q for Q1 ending 2004-03-27: http://edgarscan.pwcglobal.com/servlets/getFilingDetail?accession=0000055067-04-000184 Use the dividend discount model (DDM) to calculate the price of Kellogg common equity. Guideli