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 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
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
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.
1. One year ago, Mr. Seth Cohen invested $10,400 in 200 shares of First Industries, Inc., stock and just received a dividend of $600. Today, he sold the 200 shares at $54.25 per share. 1. What was his capital gain? 2. What was his total dollar return? 3. What was his percentage return? 4. What was the stock's dividend yie
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?
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
Owning common stock. Would you expect the distribution between dividend yield and capital gains to be influenced by the firm's decision to pay more dividends rather than to retain and reinvest more of its earnings?
A restaurant earned $820 million last year and paid out 20% of earnings in dividends. a. By how much did the restaurant's retained earnings increase? b. With 100 million shares outstanding and a stock price of $50, what was the dividend yield?
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
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
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.
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
Suppose you know that a company's stock currently sells for $60 per share and the required return on the stock is 15 percent. You also know that the total return on the stock is evenly divided between capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends
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
1. You are leasing a machine for your business. It will cost the lessor $15,000 to be carried for a 6 year. lease term, and you will be putting down 40.00%. What will the annual rental charge be to you if the lessor pays 15% and must earn profits and risk of 5% on the deal? 2. A preferred stock issue was sold 2 years a
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
Preferred Products has issued preferred stock with an $8 annual dividend that will be paid in perpetuity. a. If the discount rate is 12 percent, at what price should the preferred sell? b. At what price should the stock sell 1 year from now? c. What is the dividend yield, the capital gains yield, and the expected rate of ret
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
Question 5. NBC Company has been growing at a 10% rate, but it just paid a dividend of D0=$3.00. Due to a new product, NBC expects to achieve a dramatic increase in its short-run growth rate, to 20 percent annually for the next 2 years. After this time, growth is expected to return to the long-run constant rate of 10 percent. Th