A share has just paid a dividend of $4.96, and this dividend is expected to grow at the rate of 3% in perpetuity. If the current price of the share is $70.2, what is the cost of ordinary shares for the firm? a. 7.47% b. 10.28% c. 12.14% d. 10.07%

Q: 8. Dividend discount model Company X is expected to pay an end-of-year dividend of $5 a share. After…

A: End of year stock price (P1) = $110Expected end of year Dividend (D1) = $5Market Capitalization rate…

Q: 3. The firm's stock has a required rate of return of 11.50%, and it sells for P 35.00 per share. The…

A: Where,P0 = Stock value D0 = Current dividend g = growth rate in decimal format  D0 ( 1 + g)…

Q: Question 3 Find the dividend yield for a stock that pays annual dividend of P1, 000 per share and…

A: The dividend yield, expressed as a percentage, is a financial ratio (dividend/price) that shows how…

Q: 6. Assume that company Otto currently pays out a dividend of £8 per share and dividends are expected…

A: Dividend is the share or part of profits that is being distributed to shareholders. Dividend growth…

Q: i need the answer quickly

A: Preferred Stock refers to that type of stock that possesses equity and debt features. It is also…

Q: The market price of a stock is $24.51 and it just paid a dividend of $1.94. The required rate of…

A: The conceptual formula used:

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: Consider a firm that had been priced using a 12 percent growth rate and a 14 percent required…

A: According to Gordon's growth model ,Po = wherePo = stock priceDo = current dividend paidg = growth…

Q: A share is expected to pay a dividend of $3.67 next year, and this dividend is expected to grow at…

A: Given: D1 = $3.67 g = 3% Price = $36.44

Q: The Evanec Company's next expected dividend, D₁, is $3.55; its growth rate is 6%; and its common…

A: The cost of capital is the cost of using funds in the business. This may be in the form of equity or…

Q: A firm just paid its first annual dividend of $0.12 a share. The firm plans to increase the dividend…

A: Variables in the question:D0=$0.12g=3.5% (per year indefinitely)Current stock price=$6.50Working…

Q: Suppose Acap Corporation will pay a dividend of $2.79 per share at the ye share next year. You…

A: Price of stock would be present value of dividends and expected future price of stock and also that…

Q: 17. Suppose you purchased 1000 shares of ABC common stock at $19 with an initial you received a…

A: Maintenance margin refers to the minimum amount of capital or margin that must be maintained in a…

Q: You bought a stock one year ago for $50.00 per share and sold it today for $45.00 per share. It paid…

A: Realized return refers to the actual return generated by the asset over a period of time. This…

Q: Whited Inc.'s stock currently sells for $39.00 per share. The dividend is projected to increase at a…

A: current price (P0) = $39.00Growth rate (g) = 3.75% per yearRequired return= 11.50%

Q: ? he historical dividend yield of a stock is 5.21% and the stock's cost of capital is 12.58%, what…

A: In this question we will be solving multiple questions on stock valuation , Capital Assets Pricing…

Q: Question 1 (Page 268) – What is the holding- period return for a share which cost £2.50, was held…

A: The holding period return is sum of dividend yield and capital gain yield

Q: None

A: Step 1: Let us first look at the information givenQuarterly Dividend = $0.59Equity Cost of Capital…

Q: What would an investor be willing to pay for a share of preferred stock that pays an annual $7…

A: Investor likes to pay the amount of value of the preferred stock at the rate of return required by…

Q: 51. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021? 1.50 0.85 1.59…

A: You have asked various questions which are multiple choice questions and our protocol and guidelines…

Q: The last paid dividend is $2 for a share of ordinary shares that is currently selling for $20. What…

A: Information Provided: Dividend paid = $2 Growth rate = 8% Price of share = $20

Q: 5. Currently, Andrew is paying a dividend of $5.00 per share. If this dividend stayed the same, but…

A: The objective of the question is to calculate the dividend yield if the stock price rose by 10%…

Q: Krell Industries has a share price of $22.58 today. If Krell is expected to pay a dividend of $0.93…

A: Dividend yield = Dividend expected to pay / current share priceEquity cost of capital = Expected…

Q: Suppose a stock had an initial price of $62 per share, paid a dividend of $2.50 per share during the…

A: Dividend Yield= Dividend paid/Initial PriceCapital Gain Yield= (Ending price - Initial…

Q: Matilda Industries pays a dividend of £2.10 per share and is expected to pay this amount…

A: Solution: Given, Dividend paid per share =D0 = £2.10 As given in the question, Expected dividend…

Q: 3.4-3.5 Corporation B's stock is expected to pay a dividend of $5 per share at t=1. Its equity cost…

A: Dividend growth model is used to value the stock price of share and the implied growth rate of…

Q: is expected that these dividend payments will continue indefinitely. ABC's equity cost of capital is…

A: We need to use perpetuity formula to calculate stock price. Since dividend is paid with same amount…

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.