If you give me correct answer this financial accounting question I will give you helpful rate A firm has a dividend yield of 9%. What is the expected return, if a firmhas a 45% payout ratio, a return on equity of 10%, and assumingdividends grow at a constant rate?

Step 1: Define Dividend YieldDividend yield calculates the dividend generating capability of common…

Answered: A firm has a dividend yield of 9%. What…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A firm has a required rate of return (k) of 15 percent and a return on equity (ROE) of 18%. If the plowback ratio is 40% what is the stock's P/E ratio?
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A firm pays a current dividend of $2, which is expected to grow at a rate of 3% indefinitely. If the current value of the firm’s shares is $25, what is the required return applicable to the investment based on the constant-growth model?
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Assuming the CAPM or one-factor model holds, what is the cost of equity for a firm if the firm's equity has a beta of 1.2, the risk-free rate of return is 4%, the expected return on the market is 10%, and the return to the company's debt is 7%? A. 11.2% B. 11.4% C. 12.8% D. 12.9% E. None of these.
A. CALCULATE the cost of equity capital of H Ltd., whose risk-free rate of return equals 10%. The firm's beta equals 1.75 and the return on the market portfolio equals to 15%. B. The current ratio of H Ltd is 5:1 and standard current ratio given by accounting bodies is 2:1? Do you think that H Ltd should try to reduce its current ratio?
Assume the risk-free rate is 4% and the beta for a particular firm is 2, current firm share price is $35 and the market risk premium is 8%. A.Given the risk level, what is the one-year required rate of return (we will call this k)? B.If next year’s expected dividend is $3, use k from part A to solve for the expected next year’s price.

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A firm has a dividend yield of 9%. What is the expected return, if a firm has a 45% payout ratio, a return on equity of 10%, and assuming dividends grow at a constant rate?