Here are data on two stocks, both of which have discount rates of 15%:                            Stock A       Stock B Return on equity 15%          12% Earnings per share $ 3.50    $ 2.40 Dividends per share$ 0.70    $ 0.70   Please see attached questions

Q: Consider the following data: Common stock ($1 par value) Capital surplus Retained earnings TOTAL…

A: Number of Common Stock ($400000 / $1) 400000 Stock Dividend (400000  shares * 10%) 40000 Current…

Q: BMM Industries pays a dividend of $2.20 per quarter. The dividend yield on its stock is reported at…

A: Information Provided: Dividend per quarter = $2.20 Dividend Yield = 5.00%

Q: ABC Inc has an outstanding preferred share. The preferred share just paid a dividend of $3.15.…

A: The conceptual formula used:

Q: (Common stock valuation) Assume the following: • the investor's required rate of return is 15…

A: Given, Growth rate = Retention ratio * Return on equity Retention ratio = 40%  or  0.40 Return on…

Q: Assuming a market price per share of $180 for the preferre ock and $9 for the common stock,…

A: The question is based on the concept of Accounting for Shares and Debentures.

Q: (Common stock valuation) Assume the following: • the investor's required rate of return is 16…

A: Growth rate = retention ratio * ROE

Q: XYZ comm

A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…

Q: luation)  Assume the​ following:   •   the​ investor's required rate of return is 12.5 ​percent, •…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Common stocks for Daily Planet Advertising & News Corporation is just paid dividends of P11.50 per…

A: The dividend amount of last year can be compared with the current year to estimate the constant…

Q: A stock currently is being sold for $95, with a dividend yield of 6.2% and a dividend growth rate of…

A: SOLUTION : GIVEN, Dividend yield = 6.2% Growth rate = 4.2% Share price = $95   Now, Firstly we have…

Q: The graph below shows the rate of change of the price of a stock (in dollar share of the stock…

A: Price of stock do changes in market as period goes on due to the buying and selling in the market…

Q: A preferred stock from Duquesne Light Company (DQUPRA) pays $2.50 in annual dividends. If the…

A: Those stocks which are prioritized over common stocks at the time of payment of dividends but did…

Q: The preferred stock of Axim Corp. is currently selling at $51.07. If the required rate of return is…

A: Answer  Current price = $51.07 required rate of return = 11.7%

Q: What is the dividend yield on Stock A that sells at $15/share, when Company A pays a quarterly…

A: Annual dividend yield is the dividend return on share price in the form of percentage.

Q: ABC Corporation stock currently sells for $55.37 per share. The market requires a return of 11.03…

A: The company’s current share price is $55.37 and is expected to grow its dividend by 3.91% in…

Q: Assume a stock has earnings per share (EPS0) of £ 34.10 and a dividend pay-out ratio of53.3%. The…

A: EPS0 = 34.10 Dividend for year 0 = 34.10*payout ratio = 34.10*53.3% =18.1753 Growth Rate =10%…

Q: FedEx Corp. stock ended the previous year at $120.19 per share. It paid a $1.50 per share dividend…

A: DIVIDEND IS THE SHARE OF COMPANY'S EARNINGS OR PROFIT IT GIVES TO A CLASS OF IT'S SHAREHOLDERS .

Q: The Price / Earnings ratio of the Alfa company stock has been calculated as 6. If the expected…

A: Given Price/Earning Ratio = 6 Earnings per share = 4.50 USD

Q: 2. Determine the average annual dividend per share for each dlass of stock for the six-year period.…

A: Preferred Dividends Common Dividends Year Total Dividends ($) Total ($) Per Share ($) Total ($)…

Q: A company's $100 par preferred stock pays a $5.00 annual dividend and has a required return of 8%.…

A: The provided information are: Dividend (D) = $5.00 Discount rate (r) = 8% = 0.08

Q: A stock with a face value of $10 has declared a dividend of $2.50 for the current year. Stock is…

A: The dividend yield, expressed as a percentage, is a financial ratio (dividend/price) that shows how…

Q: Maytag Company earns $2.50 per share. Today the stock is trading at $45. The company pays an annual…

A: price per earning ratio tells the value of a company by dividing market value per share by earning…

Q: acme Company has preferred stock outstanding. It pays an annual dividend of $20. If its current…

A: The discount rate is the rate that an investor uses in the valuation of an investment’s rate of…

Q: Valuing common Stock) Assume the following: • The investor’s required rate of return is 15 percent.…

A: Given: Required rate of return (Ke) = 15% E1 = $5.00 retention ratio(b) = 50% ROE(r) = 20% Similar…

Q: Consider the following data:                                                   Amount ($) Common…

A: Number of Common Stock ($400000 / $1) 400000   Stock Dividend (400000  shares * 10%) 40000…

Q: A stock has an initial price of $75 per share. It pays a dividend of $1.25 per share during the…

A: The total percentage return on stock can be calculated as sum of dividend and capital gains divided…

Q: What is the dividend yield on Stock A that sells at $20/share, when Company A pays a quarterly…

A: Price per share = $20 Dividend per quarter = $ 0.10 Annual Dividend = 0.10*4 = $ 0.40  Dividend…

Q: Suppose a stock had an initial price of $50 per share, paid a dividend of $.80 per share during the…

A: Calculation of Total Percentage Return:The total percentage return is 21.60%.Excel Spreadsheet:

Q: ABC Corporation stock currently sells for $61.84 per share. The market requires a return of 12.05…

A: Given that;Market price of the stock is $61.84Growth rate is 5.13%Required return is 12.05%

Q: Dee's made two announcements concerning its common stock today. First, the company announced that…

A: Dividend Discount Model is a Stock Valuation Technique in which we discount the future dividends to…

Q: Epley Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the…

A: Discounted cash flows is defined as the valuation method, which used to get calculate the investment…

Q: The Blackburn Computer Company has declared an annual dividend of $0.70 per share. The stock is…

A: The dividends are the returns provided to the shareholders by the company. The dividends are the…

Q: The following data were gathered from annual report of Tomas products Market Price per Share #20.00…

A: Book value per share is the per share value of the share reported in the books of the entity.

Q: The Castle Company recently reported net profits after taxes of $14.7 million. It has 2.5 million…

A: Net profit after tax=$14.7millionCommon stock outstanding=2.5millionPreferred…

Q: Suppose a stock had an initial price of $62 per share, paid a dividend of $2.50 per share during the…

A: Here, Initial price of Stock is $62 Ending Price of Stock is $72 Dividend per share is $2.50

Q: Dividends per share are forecasted to be $1.25, $1.30, $1.35, and $1.35 for years 1 through 4…

A: Dividend refers to the part of profit that can be distributed among the shareholders by the company…

Q: Venus, Inc. has an issue of 9% preferred stock outstanding which pays annual dividends.  If this…

A: Calculate the required return as follows:

Q: Given the information of a stock:   ROE (return on equity) is 10%   Capitalisation rate…

A: ROE = 10% Reinvestment rate = 40% Required Rate of return = 8% EPS = 10 Dividend per share at end of…

Q: You calculated a P/E ratio for NJC Stock to be 8. Using the same growth rate of 12% and current…

A: The price-to-earnings ratio compares the share price of a company to its earnings per share. A high…

Q: A stock has earned $3.54 per share before dividends. They have a DPR of 35%. Similar stocks have P/E…

A: Earning before Dividend =$3.54 DPR =35% P/E ratio = 15.30 Expected Target Price if company earns…

Q: The current dividends paid on a common stock is $1/share. The return on common equity is 15%.…

A: a) Stock Price = Expected Dividend / (Return on equity - growth rate) Expected Dividend = Current…

Q: Ezzell Corporation issued preferred stock with a stated dividend of 10% of par. Preferred stock of…

A: Preferred stock is paid a dividend at a fixed rate before any dividend is paid to equity…

Q: Assuming a market price per share of $25.00 for the preferred stock and $17.50 for the common stock,…

A: Common Stock: A common stock is a form of equity ownership over the company with voting rights.…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.