What is the expected capital gains yield? The next dividend payment by Wyatt, Inc., will be $3.35 per share. The dividends areanticipated to maintain a growth rate of 7.50 percent, forever. Assume the stock currentlysells for $50.30 per share.Requirement 1:What is the dividend yield? (Do not round Intermediate calculations. Round youranswer to 2 decimal places (e.g., 32.16).)Dividend yieldRequirement 2:6.66%What is the expected capital gains yield? (Do not round Intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)Capital gainsyield93.35%

Dividend yield is = (Next dividend payment/Current stock price)*100Dividend yield is =…

Answered: The next dividend payment by Wyatt,…

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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The Evanec Company's next expected dividend, D1, is $3.08; its growth rate is 4%; and its common stock now sells for $39.00. New stock (external equity) can be sold to net $31.20 per share. a. What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. rs b. What is Evanec's percentage flotation cost, F? Round your answer to two decimal places. F = % c. What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places. re = %
Ch. 9. The next dividend payment by Skippy Jon Jon, Inc., will be $1.08 per share. The dividends are anticipated to maintain a growth rate of 4 percent, forever. The stock currently sells for $24 per share. What is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Format as a percentage as "X.X"
You want to calculate the weighted average cost of capital. The dividend just paid is $2.50/share. It is anticipated to grow at a rate of 5% for the foreseeable future. What is the cost of equity if the current price of stock is $44.30 a share? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) Cost of equity %
Blue is currently selling for $26 per share. Its next dividend (in one year) is forecasted to be $1. Immediately after the dividend is paid, you expect the price to be $33. a. What is its expected dividend yield? b. What is its expected capital gain rate? c. What is the equity investors' expected return? Question content area bottom Part 1 a. Dividend yield: enter your response here%. (Round to two decimal places.) b. Capital gain rate: enter your response here%. (Round to two decimal places.) c. Expected Return: enter your response here%. (Round to two decimal places.)
The Evanec Company's next expected dividend, D1, is $2.69; its growth rate is 7%; and its common stock now sells for $35.00. New stock (external equity) can be sold to net $31.50 per share. What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. rs = % What is Evanec's percentage flotation cost, F? Round your answer to two decimal places. F = % What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places. re = %
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The Evanec Company's next expected dividend, D1, is $3.50; its growth rate is 5%; and its common stock now sells for $38.00. New stock (external equity) can be sold to net $34.20 per share. A) What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places.rs = % B) What is Evanec's percentage flotation cost, F? Round your answer to two decimal places.F = % C) What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places. re = %
Use the information to solve the current share price. Scheduled dividends: $6.90, $17.90, $22.90, and $4.70. After that, they will pay a constant dividend growth rate of: 6%. The required return on the stock: 10% What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.) Share price
Suppose you know that a company's stock currently sells for $66.60 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If It's the company's policy to always maintain a constant growth rate In its dividends, what is the current dividend per share? Note: Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Dividend per share
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The next dividend payment by Savitz, Inc., will be $4.85 per share. The dividends are anticipated to maintain a growth rate of 2 percent forever. If the stock currently sells for $53 per share, what is the required return? A. 9.15% B. 11.15% C. 10.93% D. 2.00% E. 10.59%

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