Expected cash dividends are $2, the dividend yield is 6%, flotation costs are 3% of price, and the growth rate is 4%. Compute the approximate cost of new common stock. a. 12.29% b. 11.19% c. 10.19% d. 9.94%

If D₁ = $2.00, g (which is constant) = 4.7%, and Po = $21.00, then what is the stock's expected dividend yield for the coming year? a. 9.10% O b. 9.97% c. 10.53% d. 8.70% O e. 9.52%

h. Calculate the total return % in each of the following instances: a. Do = $2.00, dividend growth = 4%, Po = $50, P: = $60 b. Po = $32, Dividend yield % = 5%, P1 = $30 c. Dividend Yield = 4%; Capital Gain = $20; D1 = $4

A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 14.1%, and the constant growth rate is g = 4.0%. What is the current stock price? Select one: a. $12.82 b. $12.97 c. $15.45 d. $18.84 e. $19.15

The market price of an equity share with face value of Rs 10 is Rs 35, with ROI of 24% and cost of capital of 18%, what will be the Dividend payout ratio?(Use Walter model) a. 10% b. 25% c. 0% d. Cannot be determined

If Do $2.25, g (which is constant) = 3.5%, and Po= $80, then what is the stock's expected dividend yield for the coming year? 2.27% 3.61% 2.91% 2.97% 2.53%

For Company ABC, if stock price P0 = $30; dividend paid at the end of period 1 D1 = $3.00; growth rate g = 5%;   What’s the required rate of return for equity holder rs = ?   If the flotation cost F = 10%; What’s the required rate of return for equity holder rs = ?

Assume a stock has earnings per share (EPS0) of £ 34.10 and a dividend pay-out ratio of53.3%. The required rate of return (discount rate) is 16% p.a.   a) Calculate the price of the share using Dividend Discount Model assuming constant growth of dividends of 10% p.a.  b) Calculate the price of the share using Dividend Discount Model assuming that earnings grow 30% p.a. during the first three years, followed by the constant growth of 10% p.a. starting from the beginning of the fourth year.  c) Compare the calculated prices in part a) and b) and explain why they differ?

Expected Return of Common Stock Wooster Inc. has common stock with a market price of $120 per share. We expect the next dividend to be $9 and the constant growth rate to be 4% Calculate the following: Expected return (Total yield) Dividend yield Capital gain or loss yield b.

A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 9.0%, and the constant growth rate is g = 4.0%. What is the current stock price? Select the correct answer.   a. $31.20     b. $33.18     c. $30.21     d. $34.17     e. $32.19