44A company pays a $3.36 per share cash dividend this year on its common stock. The current market value of the stock is $35.00 pershare.Compute the company's dividend yield. If a competitor with a dividend yield of 6.10 % is considered an income stock, would we classifythis company's stock as a growth stock or an income stock?Complete this question by entering your answers in the tabs below.Dividend YieldDividendClassificationCompute the company's dividend yield.Choose Numerator:Dividend YieldChoose Denominator:=Dividend YieldDividend yield%

Question 1The dividend yield, expressed as a percentage, is a financial ratio (dividend/price) that…

Answered: 44 A company pays a $3.36 per share…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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ASSUME that the one year returns for COMPANY A are still (25%, -15%, 120%, -30%, -45%}. Assume also that you acquired shares in COMPANY B, which has had annual returns over the same period, of: {27; 35%; -10%; 10%; -15%}. What is the correlation between the returns on COMPANY A and COMPANY B shares? Multiple Choice 0.567 - 0.356 0.278 - 0.204 Assume that you own a portfolio comprised of 45% COMPANY A and 55% COMPANY B. What return do you expect to earn next year on this portfolio? Multiple Choice 9.74% 13.58% 10.12% 15.25%
am. 104.
S Suppose Wacken, Limited just issued a dividend of $2.61 per share on its common stock. The company paid dividends of $2.11, $2.18, $2.35, and $2.45 per share in the last four years. If the stock currently sells for $80, what is your best estimate of the company's cost of equity capital using arithmetic and geometric growth rates? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Cost of equity using arithmetic growth rate Cost of equity using geometric growth rate % %
Think about the information below: Capital surplus Retained earnings Common stock ($1 par valve) TOTAL OWNERS' EQUITY Dollars ($) 400,000 900,000 5,000,000 6,300,000 Shares are currently trading around $51 each. What impact would a 10% stock dividend have on the equity accounts? Provide the updated numbers for each line item following the dividend.
Vijay
Sh5
Assuming the following: 1. 4mm outstanding shares 2. $40mm of pre-tax Net Income 3. $9mm of Depreciation 4. PE multiple of 16x 5. $1.75 quarterly dividend which is expected to grow by 4.23% 6. Book value of $115mm 7. Current share price of $125 8. Tax rate of 25% 9. EBITDA Multiple of 7x. What is the market value of equity? A form of the correct answer would be $53mm.
need part b
Oweninc has a current stock price of $13.00 and is expected to pay a $0,85 dividend in one year. If Oweninc's equity cost of capital is 11%, what price would Oweninc's stock be expected to sell for immediately after it pays the dividend? OA. $9.51 OB. $13.58 OC. $14.43 OD. $10.86 Mayt
7
Given the information of a stock:  ROE (return on equity) is 10%  Capitalisation rate (required rate of return or k) is 8%  Earnings of $10 per share  Company reinvests 40% of its earnings (i.e., plowback rate or b = 0.4)  Expected year-end dividend is $6 per share Draw a timeline to identify the amount and timing of cash flows obtained with the stock. Next, calculate the stock value and the Present Value of Growth Opportunities (PVGO) of the stock.
Assume that you own 60 shares of common stock of a company, that you have been receiving cash dividends of $5 per share per year, and that the company has a 6-for-5 stock split Required: a. How many shares of common stock will you own after the stock split? b. What new cash dividend per share amount will result in the same total dividend income as you received before the stock split? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. What stock dividend percentage could have accomplished the same end result as the 6-for-5 stock split? a. Shares of common stock b. New cash dividend c. Stock dividend per share. %

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