A company pays a $4.41 per share cash dividend this year on its common stock. The current market value of the stock is $45.00 pershare.Compute the company's dividend yield. If a competitor with a dividend yield of 6.20% is considered an income stock, would weclassify this company's stock as a growth stock or an income stock?Complete this question by entering your answers in the tabs below.DividendClassificationCompute the company's dividend yield.Dividend YieldChoose Numerator:<111Dividend YieldChoose Denominator:Dividend Yield==Dividend YieldDividend yieldDividend Classification% A company pays a $4.41 per share cash dividend this year on its common stock. The current market value of the stock is $45.00 pershare.Compute the company's dividend yield. If a competitor with a dividend yield of 6.20% is considered an income stock, would weclassify this company's stock as a growth stock or an income stock?Complete this question by entering your answers in the tabs below.Dividend YieldDividendClassificationIf a competitor with a dividend yield of 6.20% is considered an income stock, would we classify this company's stock as agrowth stock or an income stock?Stock is< Dividend YieldDividend Classification >

For investors looking to generate income from their holdings—such as those interested in…

Answered: Compute the company's dividend yield.…

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

Calculate: -cost of common equity from retained earnings, using the CAPM method. - cost of new common stock based on the CAPM
Which of the following events increases retained earnings? Select one: a. Declaring a cash dividend b. Declaring a 10% common stock dividend c. Paying a previously declared cash dividend d. Purchasing treasury stock e. None of the above
What is par value? Select one: a. The price at which a company's stock is sold b. The dollar amount credited to capital stock when issued c. The lowest price at which a company's stock may be issued d. The highest price at which a company's stock may be issued
Compute the dividend yield for each of these four separate companies. Which company’s stock wouldprobably not be classified as an income stock? SNIPP
Ultimately what determines the value of a share of common stock? Which would be more appropriate for evaluating your company's stock price, a constant or non-constant growth model, and why?
Which of the following is true about dividends: Group of answer choices Increasing dividends can impact retained earnings. Dividends must always be paid if the company makes profit. Dividends are split equally between stockholders and bondholders. Dividends paid reduce the net income that is reported on a company's income statement.
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Data from the current year-end balance sheets Кyan Company Barco Company Data from the current year's income statement Кyan Company Assets Cash Accounts receivable, net Merchandise inventory $770,000 $880, 200 585,100 7,900 14,800 162,200 4.51 Sales $ 19,500 $ 34,000 46,500 84,440 5,000 290,000 632,500 Cost Interest expense Income tax expense Net income goods sold 13,000 24,300 64,600 132,500 6,950 304,400 210,400 Prepaid expenses Plant assets, net Basic earnings per share 5.11 Total assets $445,440 $542,450 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 61,340 $ 93,300 101,000 206.000 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value $ 29,800 $ 54,200 55,600 398,000 180,000 80,800 180,000…
Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.
(i) Calculate the market capitalisation and earnings per share of Carson before and afterthe stock dividend. (ii) Based on the calculations in part (a) (i) above, explain the impact of the stock dividend on John’s ownership position and the market price of his stock investmentin the company.
Share price, current market price and stock price is the same thing. Normally year end stock price will stated under what data in the company's financial?
With its earnings, a firm has a decision to make about whether to pay common dividends or a. pay depreciation expense on its fixed assets b. pay preferred dividends c. pay interest to bondholders d. reinvest for future growth On the income statement, interest expense is a. after-tax b. tax-deductible preferred dividents are a. tax-deductible b. after-tax and common dividends are a. after-tax b. tax-deductible Wages are considered a(n) a. an interest expense b. a depreciation expense c. a cost of good sold d. a research and development expense e. an operating expense A company usually expenses ( ) when it incurs them, because the future benefits that this spending is expected to bring are very uncertain and difficult to time. a. a depreciation expense b. an interest expense c. a cost of goods sold d. an operating expense e. a research and development expense
Why are dividends important in determining the present value of a share? How would you account for the positive market value of company’s share which currently pays no dividend? (300 words)ASAP

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Compute the company's dividend yield. If a competitor with a dividend yield of 6.209 classify this company's stock as a growth stock or an income stock?