AB Co. pays out 60% of its earnings as dividends. Its return on equity is 15%. What is the stable dividend growth rate for the firm? 9% 5% 6% 15% None of the above
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AB Co. pays out 60% of its earnings as dividends. Its return on equity is 15%. What is the stable
- 9%
- 5%
- 6%
- 15%
- None of the above
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- Eastern Electric currently pays a dividend of about $1.64 per share and sells for $27 a share. If its dividend growth rate is 7.0 %, and the payout ratio is 0.53 , what must be the ROE of the firm?A firm's common stock is currently selling for $78 per share. Last year's dividend payment was $2.50 per share. The expected constant annual growth rate for the dividend payment is 8%. The flotation cost is $5.00 per share. What is the cost of the firm's retained earnings? Select one: A. 11.70% B. 12.46% C. 11.46% D. None of these answers are correctA firm's stock is selling for $65. The dividend yield is 6%. A 7% growth rate is expected for the common stock. The firm's tax rate is 21%. What is the firm's cost of retained earnings?
- A company just paid a $3.00 dividend, expected to grow at 1.8% indefinitely. If the firm's stock can be sold for $19.25 per share with a $1.00 flotation, what is the cost of common equity? O 15.81% O 14.42% O 25.75% O 13.28%Suppose that a company's most recent dividends per share paid upon the last year's net income was $1.6 . The share price of the company is fairly valued in the market at $10 . The expected dividend growth rate is 2% in perpetuity. Given that the risk-free rate is 3% and market risk premium is 10%, what happens to the share prices when the whole market increases by 10%? a) increase by 15.32%b) increase by 15.00%c) increase by 11.79%d) increase by 21.89%e) otherGrateful Eight Co. is expected to maintain a constant 4.4 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.2 percent, what is the required return on the company’s stock? Requred Return = ________ %
- Jaynestown Corp is currently priced at 22.00 per share. They just paid their annual dividend of $1.33. They have been experiencing growth in dividends of 3.5% and expect this to continue. What is the firm's cost of equity? O 6.05% O 9.55% O 6.42% O 9.76% O 6.26%A firm just paid a dividend of $3.15. The company dividends are predicted to rise by 4.50% per year forever, and the required rate of return on a similar business is 9%. What is the fair market share price of this firm? a. $70.00 b. $76.83 c. $73.15 d. $80.59 e. $76.70what is the firm's internal growth rate (IGR) if ROA is 14.5%, ROE is 18.8%, the firm retains 65% of its net income, and pays out 35% as dividends?
- Topstone Industries just paid an annual dividend of $2.00 per share this year. This dividend, along with the firm's earnings, is expected to grow at a rate of 5% per annum forever. If the current market price for a share of Topstone is $38.61, what is the implied cost of equity? O A. O B. 10.44% O D. 11.22% O C. 10.71% 10.18% OE. 5.36% 7A company just paid a $3.00 dividend, expected to grow at 1.8% indefinitely. If the firm's stock can be sold for $19.25 per share with a $1.00 flotation, what is the cost of common equity? 15.81% 014.42% 025.75% 013.28% Onone of theseJl co. Stock currently sells for $64 per share and the required return is 12 percent. The total return is evenly divided between the capital gains yield and the dividend yield. What is the current dividend per share if it's the company"s policy to always maintain a constant growth rate in its dividends?
