The next dividend payment by Grenier, Inc., will be $1.64 per share. The dividends are anticipated to maintain a growth rate of 8 percent forever. The stock currently sells for $31 per share. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Dividend yield             % What is the expected capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent.) Capital gains yield             %         Cuban Corporation will pay a dividend of $3.06 per share next year. The company pledges to increase its dividend by 6 percent per year indefinitely. If you require a return of 12 percent on your investment, how much will you pay for the company’s stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Stock price           $          The next dividend payment by Grenier, Inc., will be $1.72 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. If the stock currently sells for $33 per share, what is the required return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return             %                 O'Leary, Inc., is expected to maintain a constant 5.2 percent growth rate in its dividend indefinitely. If the company has a dividend yield of 7 percent, what is the required return on the company’s stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return             %

Question

The next dividend payment by Grenier, Inc., will be $1.64 per share. The dividends are anticipated to maintain a growth rate of 8 percent forever. The stock currently sells for $31 per share.
 
What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
 
Dividend yield             %
 
What is the expected capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent.)
 
Capital gains yield             %

 

 

 

 

Cuban Corporation will pay a dividend of $3.06 per share next year. The company pledges to increase its dividend by 6 percent per year indefinitely. If you require a return of 12 percent on your investment, how much will you pay for the company’s stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
 
Stock price           $ 

 
 
 
 

The next dividend payment by Grenier, Inc., will be $1.72 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. If the stock currently sells for $33 per share, what is the required return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
 
Required return             %

 
 
 
 
 
 
 
 

O'Leary, Inc., is expected to maintain a constant 5.2 percent growth rate in its dividend indefinitely. If the company has a dividend yield of 7 percent, what is the required return on the company’s stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
 
Required return             %

 
 
 
 
 
 

 

 

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