22-The Engineering Company currently has 50,000 outstanding stocks selling at OMR 100 each. If the market price of per stock at the end of the current year is expected to be OMR 111, then what would be amount of dividend declared per share under MM model? Assume that the opportunity cost of capital is 13%. a. OMR 2 per stock b. OMR 7 per stock c. OMR 5 per stock d. OMR 3 per stock

Q: .  Mimi’s common stock sells for P25 per share, its last dividend was P2.50, Mimi should pay P2.50…

A: next dividend = 2.5 (1 + 0.05) = 2.625 Price after flotation cost = 25 - 2.5 = 22.5 Expected return…

Q: Tresnan Brothers is expected to pay a $2.30 per share dividend at the end of the year (i.e., D1 =…

A: In this we have to use constant dividend growth model.

Q: The company has issued equity stock priced at $200 each for its 15,000 shares. the company is…

A: We will employ the dividend discount model (DDM) approach for the purpose of calculating the equity…

Q: Assume Evco, Inc. has a current stock price of $49. 11 and will pay a $2.25 dividend in one year,…

A: Given information: Current Stock price (P0) = $49.11 Expected dividend in year 1 (D1) = $2.25 Equity…

Q: A preferred stock pays an annual dividend of $8.00. If the required return is 8%, what is the…

A: Intrinsic Value of preferred stock = Annual Preferred dividend / Required returnAnnual preferred…

Q: Calculate the cost of capital for a new common stock issue by a firm that paid a $1.80 dividend last…

A: Current dividend = d0 = $1.80 Growth rate = g = 7% Price of common stock = p = $30

Q: 9. VOL stock has just paid a dividend (DO) of $4.00 per share. Dividends are expected to grow at 5%…

A: Investors may consider dividend payments as an important factor when evaluating a stock as they…

Q: L&O recently paid a dividend of $1.50. The stock is currently trading at $35. If the required rate…

A: Growth Rate is that rate at which rate price of share or dividend amount will increase with…

Q: A company's common stock currently sells for $22.50 per share, the expected dividend for the coming…

A: Cost of Retained earning= (Expected Dividend / Price ) + Growth = (1.92/ 22.5) + 6%= 14.53%

Q: am. 112.

A: The objective of this question is to calculate the value of a stock today based on the Gordon Growth…

Q: $22.00 per share is the current price for Foster Farms' stock. The dividend is projected to increase…

A: Price of share(P0) =$22.00 Growth Rate(g) =5.50% Required Return(rs) =9.00% Expected Dividend for…

Q: The stock of Nogro Corporation is currently selling for $18 per share. Earnings per share in the…

A: First, let us find the constant growth rate, dividend next year, and finally the rate of return:ROE…

Q: Assume Evco, Inc. has a current stock price of $53.13 and will pay a $2.05 dividend in one year; its…

A: Stock price refers to the current value at which a single share of a company's stock is traded on a…

Q: 9.Rebel Restaurant expects to pay a common stock dividend of $1.50 per share next year (d1).…

A: External Equity means amount raised from external sources by issuing common stock or shares.

Q: 2. Preferred Stock Valuation RSR Inc. has an outstanding preferred stock issue with a par value of…

A: A class of stock known as preferred stock is given specific privileges that set it apart from common…

Q: Krell Industries has a share price of $22.58 today. If Krell is expected to pay a dividend of $0.87…

A: Dividend yield, capital gain and return on investment are all financial ratios an investor would…

Q: X Corp paid dividends to OS last year by 2.20 per share. The current market price of Ordinary Shares…

A: Cost of equity (Ke) :— It is rate of return expects by common equity shareholders on their…

Q: Alpha Moose Transporters has a current stock price of $22.35 per share, and is expected to pay a…

A: Flotation cost:Flotation cost is a term used in finance to describe the expenses incurred when…

Q: A company expects an indefinite stream of future dividends of P200,000  and a required rate of…

A: Market value of the stock = future dividends / required rate of return Market price per share =…

Q: A firm has 80,000 shares of stock outstanding with a market price of $25 per share. If net income…

A: The dividend yield is calculated as the ratio of dividend and the stock price.

Q: A-Gr8 Company has a current share price of $15.28 per share and is expected to pay a dividend yield…

A: Given: Purchase price =$15.28 Selling price =$16.05 Dividend yield = 4%

Q: 3. Mando Inc. next year earnings per share is expected to be $7. Its return on equity is 20%, which…

A: Given, Earnings per share is $7. Return of equity 20% Market required return is 12%

Q: A firm has 80,000 shares of stock outstanding wih a market price of $25 per share. If net income for…

A: The dividend yield is calculated as the ratio of dividend per share and the market price of the…

Q: If a company has a current stock price of $45, an EPS of $3/share; EPS growth rate of 10% and the…

A: Cash price refers to the amount of cash i.e. received or paid while purchasing or selling the goods…

Q: The cost of the firm's common stock equity is Select one:

A: Cost of Equity: It is the minimum acceptable rate of return for the equity investor for investing…

Q: Weaver Brothers expects to earn $3.50 per share (E₁), and has an expected dividend payout ratio of…

A: Solution: Cost of equity means the minimum rate of return required by the equity shareholders of the…

Q: A stock is expected to pay dividends of $1.45 per share in Year 1 and $1.68 per share in Year 2.…

A: The stock price is the current market value of the stock, which depends upon the required rate of…

Q: The Boston Brewing Company is planning on issuing common stock at a market price of $13 per share.…

A: COST OF EQUITY  Cost of Capital is the minimum rate of return that must be earned on investments, in…

Q: Assume that a firm can issue preferred stock that has a $70 par value and pays a 15.0% annual…

A: The expenses related to offering new securities, such as common stock or bonds, to the general…

Q: 不 Anle Corporation has a cument stock price of $20.78 and is expected to pay a dividend of $1.15 in…

A: Equity cost of capital is the cost of using owner's funds in the business. It is is the return that…

Q: Egypt company expected to pay dividend next year of $2.70 per share, and dividends are expected to…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: Assume Evco, Inc., has a current stock price of $47.06 and will pay a $1.95 dividend in one year,…

A: Expected stock price is calculated by following formula:-Expected stock price =

Q: A company that is currently enjoying a 12.5% growth rate expects to pay dividends of P4.50 per share…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: Boehm Inc. is expected to pay a S1.50 per share dividend at the end of this year (i.e., D1 = S1.50).…

A: Value of the stock is referred as current price of the share which is the most recent selling price…

Q: investors in IBM common stock expect the firm to pay a dividend next year of $1.97 per-share…

A: Gordon's growth model is one of the most commonly used variations of the dividend discount model.…

Q: Face value of equity shares of a company is ? 10, while current market price is 7 200 per share.…

A: We are given that, Face value of equity share = ₹ 10 Current market price = ₹ 200 Issue price per…

Q: A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per…

A: The dividend yield is the percentage ratio that tells us about how much dividend a company is paying…

Q: A stock is expected to pay a dividend of $3.00 per share in year 1. The stock price after one year…

A: FV = PV × (1+r)n where, FV = future value of cash flows PV = Present value of cash flows r = cost of…

Q: 13. Use the following information on Stock X to find the price of a share of stock using the…

A: The objective of this question is to calculate the price of a share of stock using the free-cash…

Q: None

A: Constant growth dividend discount modelPrice = D1/(r - g)r - g = D1/Pricer = D1/Price + gr = 12/100…

Q: Shamas Famous Restaurants expects to pay a common stock dividend of $1.50 per share next year (d1).…

A: The Dividend Discount Model (DDM) is a valuation method used to estimate the intrinsic value of a…

Q: A company paid $111 per share in dividend this year, the company expects to grow at the rate of 12%…

A: The intrinsic value of a stock is found out by computing the present value of dividend stream.

Q: What is the price of a stock with an annual dividend of $30, required return on equity of 10%, and…

A: Stock price = dividend * (1+growth ) / (Required return - growth)

Q: Pinkman Motors paid a dividend of $ 3.75 last year. If J Pinkmans return on equity is 24% and its…

A: Value of common stock can be calculated by using dividend growth model. This model consider dividend…

Q: Easttown Productions just paid an annual dividend of $7.85 per share. Future dividends are expected…

A: Dividend discount model is one of the method used for calculating stock price. It uses next year…

Q: OwenInc has a current stock price of $14.30 and is expected to pay a $0.70 dividend in one year. If…

A: We need to use equation below to calculate stock price after 1 year.P1 = P0(1+r) -D1P0 = current…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.