52. Investments: High Dividend Stocks During the first quarter of 2015, Plains All American Pipeline L.P. (PAA) stock cost $50 per share and was expected to yield 5% per year in dividends, while Total SA (TOT) stock cost $50 per share and was expected to yield 6% per year in dividends. If you invested a total of $45,000 in these stocks and expected to earn $2,400 in dividends in a year, how many shares of each stock did you purchase?

52. Investments: High Dividend Stocks During the first quarter of 2015, Plains All American Pipeline L.P. (PAA) stock cost $50 per share and was expected to yield 5% per year in dividends, while Total SA (TOT) stock cost $50 per share and was expected to yield 6% per year in dividends. If you invested a total of $45,000 in these stocks and expected to earn $2,400 in dividends in a year, how many shares of each stock did you purchase?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Your company had net income of $82,500 for the year just ended. Dividends of $35,250 were paid on the company's beginning equity of $907,500. If the company has 62,000 common shares outstanding with a current market price of $7.50 per share, what is the required rate of return on the shares assuming a constant sustainable growth rate of dividends? Options 13.18% 13.51% 13.84% 14.17% 14.50%
Howard, LLC has an equity beta of 1.3. The company just paid an annual dividend of $0.30, and the dividends are expected to grow at 4 percent per year. The expected return on the market is 13%. The most recent stock price was $80. Calculate the cost of equity using the Dividend Discount Method.
Shamas Famous Restaurants expects to pay a common stock dividend of $1.50 per share next year (d1). Dividends are expected to grow at a 4% rate for the foreseeable future. Shamas’ common stock is selling for $18.50 per share, and issuance costs are $3.50 per share. What is Shamas cost of external equity? 12.11% 20.59% 10.00% 14.00%
2. Investments: High Dividend Stocks During the first quarter of 2015, Plains All American Pipeline L.P. (PAA) stock cost $50 per share and was expected to yield 5% per year in dividends, while Total SA (TOT) stock cost $50 per share and was expected to yield 6% per year in dividends." If you invested a total of $45,000 in these stocks and expected to earn $2,400 in dividends in a year, how many shares of each stock did you purchase?
Shellbridge Corporation common stock has a par value of $25 and recently paid a dividend of $4.76 per share. The firm's dividends have grown from $1.50 to $4.76 over the past 10 years, which also reflects the expected growth in dividends for the indefinite future. The stock is selling for $40 and you think a reasonable required rate of return is 15%. What is the stock's intrinsic value?
Circuit City Stores (CC) recently paid a $.16 dividend. The dividend is expected to grow at a 23 percent rate. At the current stock price of $7.96, what is the return shareholders are expecting?
Shellbridge Corporation common stock has a par value of $25 and recently paid a dividend of $4.76 per share. The firm's dividends have grown from $1.50 to $4.76 over the past 10 years, which also reflects the expected growth in dividends for the indefinite future. The stock is selling for $40 and you think a reasonable required rate of return is 15%. What is the stock's intrinsic value? O $172.46 O $193.57 $31.73 $35.62 O $101.86