At the beginning of 2009, the price of a share in company X was £50, and the price of a share in company Y was £1000. During each subsequent year, the price of the share in Company X rose by 20% of its value, and the price of the share in Company Y fell by 20% of its value. During which year did the two shares reach equal values?

Q: Ivanhoe, Inc., is a mature firm that is growing at a constant rate of 5.62 percent per year. The…

A: Market value of company stock is present value of all future cash flows that is Calculated using…

Q: idilabs Limited issued a dividend of $9.60 yesterday.  It expects dividends to grow at a steady rate…

A: Prices of stock can be found out from the dividend growth discount model assuming the constant…

Q: P1.50 per share at the end of next 12 months. The required rate of return for Lion’s share is 10…

A: in this we have to use formula for constant growth dividend discount model to calculate prices of…

Q: Exactly one year ago, you bought 900 shares of Benefisite Corp. common stock for $25.31 per share.…

A: Number of shares = 900 sharesBeginning Price = $25.31 per shareEnding Price = $28.65 per share

Q: Due to the current global economic conditions, Canary Ltd stopped its dividend payments. Dividends…

A: The value of a share is the present value of its dividends.

Q: The annual returns for Kang Co. stock for the last three years were 6 percent, −12 percent, and 19.3…

A: Holding period return is the return of the asset that can be expected by an investor for holding…

Q: In 2014, Best Buy Corp. paid a quarterly dividend of $0.0667 per share, but by 2020 that figure had…

A: Dividend is the part of earnings shared among shareholders.

Q: The Bouchard Company's EPS was $6.50 in 2021, up from $4.42 in 2016. The company pays out 30% of its…

A: To apply the constant dividend growth model, 2 requirements have to be fulfilled:(1) The growth rate…

Q: The Bouchard Company's EPS was $5.90 in 2021, up from $3.47 in 2016. The company pays out 50% of its…

A: 1. Calculate the past growth rate in earningsThe formula to calculate the growth rate…

Q: If Microsoft earned 0.85 per share in 2000, what is the net factor applied if the earnings raised to…

A: Earning per share:   Earning per share is the net profit earned by a company per outstanding common…

Q: You purchase 800 shares of stock at a price of $20 per share. One year later, the shares are selling…

A: The capital gain yield is the gain in value of shares without considering the dividend income.

Q: National Corporation shares are selling for P50. Earnings for the last 12 months were P3 per share.…

A: Solution:- Price Earnings (P/E) Ratio means that how much times is the price of the entity, in…

Q: Oriole, Inc., is a mature firm that is growing at a constant rate of 7.15 percent per year. The last…

A: As per Dividend Discount Model, P0= D1 / (ke-g) Where D1 = Expected Dividend  D1 =D0*(1+g) ke =…

Q: XYZ, Inc. declared on January 1, 2015, that it will pay a cash dividend of $1.00 per share at the…

A: Dividend Paid in 2015 1 Growth Rate in 2016 20% Growth Rate in 2017 20% Growth Rate after 2017…

Q: Johnson Products earned $4.20 per share last year and paid a dividend of $1.55 per share. If ROE was…

A:

Q: You purchased 100 shares of Pepsico stock in January 2012 for $55 per share. Each year you received…

A: The capital gain (or loss) and the total dividends received over the investment period. The formula…

Q: On August 19, 2004, Google completed its IPO of 20.0 million shares to the initial investors at $85…

A: Value of underpriced : It is the difference of Closing price of share at first trading day and share…

Q: The dividend per share was P27 last year while the current market price of the shares is P135. The…

A: Cost of equity is referred as the return, where the corporation requires for the project or the…

Q: DD Plc is expected to declare earnings per share of £1.60 next year. The company historically has…

A: Present value of growth opportunities is calculated using the current market price of stock and…

Q: Daniel invested $1,000 in large U.S. stocks at the beginning of 2012. This investment earned 15.30…

A: Return rate in 2012 = 15.30% Return rate in 2013 = 33.20% Return rate in 2014 = 12.25% Return rate…

Q: Stock ABS has a dividend yield of 1.5 percent. Last year, the stock price fell from P65 to P60. What…

A: The stock price is the price or value that is given for each unit of share that is issued by a…

Q: National Corporation shares are selling for P50. Earnings for the last 12 months were P2 per share.…

A: The appropriate price of the stock using the P/E ratio can be estimated by multiplying the P/E ratio…

Q: JPS plc's current share price is £3.63. An investor is wondering whether to buy shares in JPS or…

A: A warrant on a stock gives the holder the right but not the obligation to buy and sell the…

Q: Waller Company paid a $0.150 dividend per share in 2000, which grew to $0.324 in 2012. This growth…

A: First we have to calculate the growth rate

Q: The following is the Fine Organics Ltd. as on 31stMarch current year. Equity Share: 10000 Share (Rs.…

A: The weighted average cost of capital is the weighted average cost of raising capital from outside…

Q: A​ company's stock price rose ​2.8% in​ 2011, and in​ 2012, it increased  79.7​%. a. Compute the…

A: The mean refers to the average value of the complete data where the data can be the stock returns.…

Q: The Bouchard Company's EPS was $6.80 in 2021, up from $3.34 in 2016. The company pays out 50% of its…

A: The objective of the question is to calculate the past growth rate in earnings for a 5-year growth…

Q: Digital Industries paid a dividend of $2.00 per share of stock recently and expects to grow the…

A: Let Dn be the dividend in year n. D0 = $2 Growth rate (g) = 3% r = 7%

Q: During the period 2006–2016, earnings of the S&P 500 Index companies have increased at an average…

A: Dividend collectively paid =$397.20 billion in 2016 As per Gordon Growth Model, Aggregate value of…

Q: On August 19, 2004, Google completed its IPO of 18.5 million shares to the initial investors at $80…

A: Dollar Value of the underpricing = (Closing price - Issue Price) * No. of shares

Q: Blue Co. earns P2,850,000 in 2021 and it has a total outstanding shares of 425,000. On 2022, the…

A: Plowback ratio which is most commonly termed as retention ratio is a type of ratio that depicts and…

Q: XYZ, Inc. declared on January 1, 2015, that it will pay a cash dividend of $1.00 per share at the…

A: Given: Expected dividend = $1 2016 growth rate = 20% 2017 growth rate = 20% Constant growth rate =…

Q: Collins Inc. has just paid its annual dividend of $2.2. The company expects that its dividends in…

A: Using the sum of the present values of all possible dividends to be received and the expected…

Q: Sprint Nextel Corp. stock ended the previous year at $47.36 per share. It paid a $3.37 per share…

A: Given information: Initial Price (P) = $47.36 Ending Price (P1) = $42.89 Dividend (D) = $3.37 Number…

Q: Gee-Gee common stock returned a nifty 21.77 percent rate of return last year. The dividend amount…

A: Rate of price appreciation will be the difference between market return by stock and dividend yield…

Q: The price of the stock of Clarkson Corporation went from P50 to P56 last year. In the following…

A: Initial Stock Price at time of purchase = 50 Stock Price at beginning of current year = 56 Dividend…

Q: Suppose that during a 12 year period, a corporation's stock has a 2:1 split. By what percent would…

A: Stock splits are corporate actions in which a company increases the number of its outstanding shares…

Q: A share in ABC Ltd is expected to be worth Euro 72.65 in one year’s time. It has been predicted that…

A: Given information: Stock price in 1 year : 72.65 Dividend in 1 year : 3.56 Discount rate : 15%

Q: The shareholders of Integrity Company recently received their dividends amounting to P4 per share.…

A: There are mainly 3 methods for equity valuation : Dividend Based Model Earning Based Model Cash…

Q: XYZ, Inc. declared on January 1, 2015, that it will pay a cash dividend of $1.00 per share at the…

A: Share price is the sum of present value of all dividends. For finite series of dividends, P0…

Q: You inverted $10,000 in a large U.S. stocks at the beginning of 2016 and earned 6% in 2016, 2.0% in…

A: Average return is calculated by dividing the sum total of return earned during different periods by…

Q: Johnson Products earned $4.35 per share last year and paid a dividend of $1.70 per share. If ROE was…

A: Sustainable growth rate:The sustainable growth rate refers to the rate at which a company can grow…

Q: A company’s share capital consists of 2,800,000 ordinary shares of 25 pence each. During its last…

A: Dividend yield is one of the ratio which is used for calculating and analysing how much dividends…

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.