a. What is its dividend yield? b. What is its capital gains rate? 96 c. What is the total realized return on this stock?

Q: What’s the difference between a stock’s current market price and its intrinsic value?

A: Stock Current market price is the price at which the stock traded in the market.   Intrinsic value…

Q: What does the rate of return on common stock show, and how is it calculated?

A: Rate of return on the common stock: It signifies the amount of net income that has been retained for…

Q: How do you calculate price earnings ratio, given the stocks historical prices?

A: Price earnings ratio is ratio of price per share and earning per share. PE ratio=Price per…

Q: How can I calculate CF or (dividends + buyback) in Implied equity risk premium? (By example of…

A: Implied ERP is calculated by first calculating the Return on Equity using constant dividend growth…

Q: Using the cost of new common​ stock, the​ firm's WACC is?

A: Cost of new common stock = 13.5512104904717% After tax cost of debt = 4.29106052668296% Cost of…

Q: What is the assumption of the dividend growth model? Comment on the  reasonableness for the…

A: The Dividend Growth Model, also known as the Gordon Growth Model, is used to estimate the intrinsic…

Q: What is a capital gain? O The total amount of return expected from a stock investment. O The present…

A: A capital gain is the profit that an investor realizes when they sell an asset, such as a stock, for…

Q: What are the main stock- and firm valuation methods and is there a relationship between the stock…

A: Value of the firm is the market value of the firm at its present market value of eah share.

Q: Preferred Dividend formula = Par value * Rate of Dividend * Number of Preferred Stocks.   can u…

A: The preferred dividend formula is used to calculate the amount of dividends that a company must pay…

Q: Assuming that the required rate of return is determined by the CAPM, explain how you would usethe…

A: Given: The required rate of return is determined by the CAPM and the dividend growth model to…

Q: Write Example for equity dividend?

A: Answer: Equity dividend is the dividend that is paid to equity shareholders.

Q: Return formula for common stock?

A: Applying capital asset pricing model (CAPM),

Q: Dividend yield formula?

A: Dividend yield is the ratio of the expected dividend to current share price. It is a financial…

Q: Q7 Which of the following has the implicit cost of capital? a. Retained earnings b. Bonds c. Equity…

A: An implicit cost or the imputed cost refers to the opportunity cost that is forgone in order to…

Q: What is meant by the dividend yield on a common stock investment?

A: Not all the tools of fundamental analysis work for every investor on every stock.  For dividend…

Q: Explain the fundamental equivalence of valuation based on expected future dividends free cash flows…

A: Introduction: The valuation for dividends, cash flows & earnings generally vary in their own…

Q: What role does sentiment play to explain stock price volatility? Explain

A: The role of emotion in determining the price of a company is one of the most significant aspects to…

Q: Explain how to find the value of a stock given itslast dividend, its expected growth rate, and…

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

Q: How to calculate market price range of common stock?

A: Market price per share: A market price per share is total value of company divided by number of…

Q: 15. What is the cost of an investment in stock?

A: Buying stock to invest in means obtaining ownership stakes in publicly traded businesses. The little…

Q: How much is the total Share Capital? How much is the total Additional Paid In Capital? How much is…

A: The additional paid in capital is the capital which has been paid by the shareholders to the company…

Q: Why are stocks categorized in terms of market capitalization

A: The total market worth of a firm expressed in dollars is its market capitalization, also referred to…

Q: how do we calculate dividend when there is eps retention ratio and dps retention ratio?

A: The dividend payment to the shareholders based on the company's earnings and its dividend payout…

Q: What is current stock price?

A: Stock means equity part of the company. Companies’ capital structure may contain debt, equity, and…

Q: What are three ways to estimate the expected dividend growthrate?

A: Expected Dividend growth rate is the prospective growth expected by investors on the dividend paid…

Q: Topic: Payout Policy What is the advantage(s) of dividends against retained earnings?

A: Dividend is the share which is given to the shareholders when from the company's profit. Dividend…

Q: binomial model account of volatility

A: Volatility is simply referred to as the uncertainty or risk in the change in the value of a…

Q: How to calculate preferred dividends?

A: Preferred dividends are the fixed dividends paid to the holders of preferred stock, a type of stock…

Q: Where does the -$40 dividend payment come from?

A: Cash flow statement is one of financial statements, which is prepared at the end of accounting…