The required return on a stock is equal to which one of the following if the dividend on the stock decreases by a constant percent per year? O Dividend yield - Capital gains yield O (PO/D1)-8 O (D1/PO)/g O Dividend yield x Capital gains yield Dividend yield + Capital gains yield

Q: If the dividend yield for year 1 is expected to be 7% based on a stock price of $30, what will the…

A: Dividend Amount = Stock price * Dividend yield Dn = D0 * ( 1 + Growth rate )n

Q: If the interest rate is approximately equal to the growth rate of dividends, the price of a stock…

A: Formula for stock price calculation using Dividend discount model: =D1 / (Ke- growth rate)

Q: Stock A has a capital gains yield of 10% and a dividend yield of 4%. Stock B has a capital gains…

A: The return that a security must generate to satisfy the expectations of investor is called required…

Q: Which of the following formulas is INCORRECT? O A. Div, EPS, X Dividend Payout Rate OB. E=(Div/P)+g…

A: In this question, we are required to identify the incorrect formula.

Q: What comes closest to the value today of a stock that just paid a dividend of $1 and expects to grow…

A: Current price of share is the price which can be paid for purchase of the share. It is also called…

Q: stock that a growth rate of 0% must have a dividend yield that is equal to the required return…

A: The growth of company depend on various factor that include the company reinvestment date and the…

Q: The dividend-growth model may be used to value a stock:   Round your answers to the nearest cent.…

A: The objective of the question is to calculate the value of a stock using the dividend-growth model.…

Q: Consider the table given below to answer the following question. Asset value Earnings Year Net…

A: Stock valuation is the process of determining the intrinsic value of a company's stock. Various…

Q: What is the value of Company X stock if the dividend next year will be $3 and is expected to grow at…

A: Dividend to be paid next year= $3 Growth rate=4% Required return=9.08% Value of Company X stock=?

Q: The following graph shows the value of a stock's dividends over time. The stock's current dividend…

A: Given:stock's current dividend = $1.00 per shareGrowth rate (R) = 3.50% or 0.035 (Divide…

Q: What is the capital gains yield of a constant growth stock with an expected growth rate of 0.04. The…

A: This model is also known as the Gordon Growth Dividend or dividend discount model.. This model was…

Q: ven the following information for the stock of Foster​ Company, calculate the risk premium on its…

A: Price of Stock(Po) = Dividend per share next year(D1)/(Expected return - Dividend growth rate)…

Q: I want answer

A: Given Information:Next Dividend Payment: $1.64 per shareGrowth Rate of Dividends: 8%…

Q: What is the value of Company X stock if the dividend next year will be $3 and is expected to grow at…

A: Dividend to be paid next year= $3Growth rate=4%Required return=9.08%Required:Value of Company X…

Q: Solve this problem

A:

Q: Round your answers to the nearest cent.   What is the value of a stock if: D0 = $2.10 k = 10% g =…

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

Q: You are considering the purchase of preferred stock that is currently selling for $57.25 and…

A: Rate of return is the amount which is earned by the investor on his investment. It includes the…

Q: What would be the approximate expected price of a stock when dividends are expected to grow at a 26%…

A: Step 1: The calculation of the expected price of stock ABCD1YearDividendTerminal valuePresent…

Q: Using the constant dividend growth model, determine the price change in a share when the required…

A: The dividend discount model (DDM), a mathematical technique for predicting the price of a company's…

Q: Provide answer

A: Dividend YieldThe dividend yield is calculated by dividing the annual dividend payment by the…

Q: Provide Answer with calculation and explanation

A: Step 1:Dividend YieldDefinition: The dividend yield is the annual dividend per share divided by the…

Q: Question: The next dividend payment by Halestorm, $1.64 per Inc., will be share. The dividends are…

A: Given thatNext dividend payment (D1​​) = $1.64 per shareGrowth rate of dividends (g) = 8% or…

Q: 0. GM common stock pays a constant annual dividend $1/share forever and its stock price is $20. If…

A: Risk Premium  A risk premium is defined as the premium calculated by subtracting the expected return…

Q: A stock's next expected dividend divided by the current stock price is the: O current yield O total…

A: A stock's price is decided by the dividend it pays, the dividend growth rate and the required rate…

Q: Round your answers to the nearest cent. a. What is the value of a stock if: Do $1.20 k = 13% 9 = 9%…

A: Dividend  growth model The model, which assumes that the growth of dividends remains the same…

Q: Round your answers to the nearest cent. a. What is the value of a stock if: Do = $3.10 k = 12% g =…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: A decrease in which of the following will increase the current value of a share according to the…

A: Dividend growth model The dividend discount model is a method that helps to calculate the actual…

Q: A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per…

A: Rate of return : it means , what an investor is earning on investment amount in shares. it includes…

Q: Help

A: Step 1: Dividend per share= $1.64 Growth rate = 8% Market price = $31 Dividend yield = Dividend per…

Q: The annual dividend yield is compounded by dividing annual dividend by the current stock price.

A: The dividend yield is computed by using the below mentioned formula: = Dividend per share / Current…

Q: 1) Based on End-of-Chapter Problem 6 in Chapter 5 The stock of Business Adventures sells for $40 a…

A: 1.Standard deviation of stock = 2. Expected return of Portfolio Comprising of two stocks is…

Q: Question 7 Which one of the following will decrease the current value of a stock? O Increase in the…

A: The amount of a dividend is fixed by the company's BOD, and it can vary based on the company's…

Q: The constant growth valuation formula has dividends in the numerator. Dividends are divided by the…

A: Constant growth stocks are those stocks that exhibit a steady growth in its prices. The value of…

Q: dividend growth rate as follows: widehat(P), Which of the following statements is (r-gL) true?…

A: The constant growth model is a valuation technique that calculates a stock's intrinsic value by…

Q: How would this affect its price, dividend, yield, and capital gains yield? Find the price today. D₂…

A: Given: Current dividend(D0) $1.60 Required return (rs) 10% Short term growth rate (gs) 20%…

Q: Stock A has a constant growth rate of 4% and a required return of 10%. Stock B has a constant growth…

A: Given, Stock A constant growth rate = 4%  Required return = 10% Stock B constant growth rate = 6%…

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.