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

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By using the dividend growth model, estimate the cost of equity capital for a firm with a stock price of $30.00, an estimated dividend at the end of the first year of $3.00 per share, and an expected growth rate of 10%. Select one: A. 10.0% B. 20.0% C. 11.0% D. 21.1%

Firm A’s stock has an expected total return = 9.2%. The last annual dividend =  $2.10/ share. Dividends growth rate = 2.6% annually. Dividend yield = ? A) 3.75%B) 4.20%C) 4.55%D) 5.25%E) 6.60%

A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $59.   Required: a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $44. What are the dividend yield and percentage capital gain in this case?

Retained earnings versus new common stock Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using the constant-growth valuation model. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Current market price per share $36.00 a. The cost of retained earnings is %. (Round to two decimal places.) Dividend growth rate 9% Projected dividend per share next year $1.08 (…) Underpricing Flotation cost per share per share $2.50 $2.00

The current price of stock A is $40. The expected dividend for the next year is $2. The dividend is expected to grow at a constant growth rate in the future. The required return of stock A is 15%. Using constant-growth dividend model, the implied dividend growth rate is _______. A. 10% B. 5% C. 15% D. 0%

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Return on Common Stock You buy a share of The Ludwig Corporation stock for $23.70. You expect it to pay dividends of $1.10, $1.1715, and $1.2476 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $28.63 at the end of 3 years.   Calculate the growth rate in dividends. Round your answer to two decimal places.   % Calculate the expected dividend yield. Round your answer to two decimal places.   % Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places.   %