Q20 The current market price of an equity share of a company is OMR 70, cost of equity is 14.85% and expected growth rate in dividends is 7.05%, then what is current dividend per share? a. OMR 5 per share b. OMR 5.145 per share c. OMR 15.33 per share d. OMR 5.46 per share

Q: Security A B C Shares Outstanding 20,000 15,000 20,000 % of Shares in the Market Float 41% 37% 53%…

A: The market-capitalization index is an index where the component stocks are given their weightage…

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: 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: Calculate the value of common stock given: Expected Dividend Year 1 (D1) is $20; Capitalization Rate…

A: As per Gordons growth model,   P = D1 / (Ke-g)   P = stock price D1 = value of next…

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: 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: Assume that a company will distribute $2.5 dividend at the end of the year and the required rate of…

A: Given, Dividend at the end of the year = $2.5 Required rate of return = 10% Dividend growth = 6%

Q: am. 112.

A: The objective of this question is to calculate the value of a stock today based on the Gordon Growth…

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: Company V Company U Dividend growth 41.8% 33.3% Dividend Payout 19.6% 31.1% Dividend Coverage…

A: Dividend is money shared with shareholder out of profit of the company.

Q: Macy's Corporation next annual dividend is expected to be $0.76, and its current stock price is…

A: Next year dividend (D1) = $0.76Current stock price (P) = $55.25Cost of capital (r) = 8%Assuming…

Q: A firm has a P/E ratio of 15 and a stock price of $35 per share. If their profit margin is 10% and 1…

A: First we need to use PE ratio for calculation of net income.P/E ratio =Net income/Equity…

Q: Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at…

A: The cost of equity speaks to the return that speculators anticipate to get on their venture in a…

Q: Financial analysts forecast Safeco Corp.’s (SAF) growth rate for the future to be 8 percent.…

A: Last dividend (D0) = $0.88 Growth rate (g) = 0.08 Required return (r) = 0.12   Value of the stock =…

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: 28. A company has common stock which is expected to have a dividend of $2.59 at the end of year 5.…

A: The common stock is an equity-based instrument that allows the investors to participate in the…

Q: A stock is expected to pay dividends of $1.45 per share in Year 1 and $1.68 per share in Year 2.…

A: The stock price is the current market value of the stock, which depends upon the required rate of…

Q: Synovec Company is growing quickly. Dividends are expected to grow at a rate of 19 percent for the…

A: Growth rate for first 3 years = G = 19%Growth rate after 3 years = g = 6%Required rate of return = r…

Q: Assuming the Cost of equity capital is 10% use the dividend discount valuation model to estimate the…

A: The constant growth model, often known as the Gordon growth model describes the link between the…

Q: A firm is expected to pay a $5.70 dividend per share next year. The stock is selling in the market…

A: Stock valuation is a process to estimate to intrinsic price of a stock. Sum of all the expected…

Q: FedEx Corporation (FDX) has a current share price of $157.83 and is expected to have earnings per…

A: Price of FDX stock = $157.83 EPS of FDX stock = $12.58   PE ratio of FDX stock = Price of FDX stock…

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.