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             %

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             %

 
 
 
 

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Finance

Equity Valuation

Related Finance Q&A

Find answers to questions asked by students like you.

Q: Topic: Capital Budgeting and Valuation with Leverage Is it possible to calculate the unlevered value...

A: APV: It is abbreviated as Adjusted Present Value, is a study which is like the discounted cash flows...

Q: Consider the following three bond quotes: a Treasury bond quoted at 103:17, a corporate bond quoted ...

A: Bonds are usually quoted as a percentage of its par value. Thus, to find the price of the bond follo...

Q: Topic 6 Bond Valuation 5. A 20-year bond has a face value of $1,000, a coupon rate of 7.5%, and a yi...

A: Hence, the semi -annual interest payment is $37.5.The semi- annual interest payment is calculated by...

Q: A computer call center is going to replace all of its incandescent lamps with more energy-efficient ...

A: Part (a)The cash flows and IRR calculations are shown on the white board. Please see the white board...

Q: How much money will you have in 2 years if you deposited $5500 into an account 4 years ago earning s...

A: Calculate the future value as follows:

Q: Your company is currently considering two investment projects. Each project requires an upfront expe...

A: 1.a)Computation of payback period for project A and project B:Hence, the payback period of project A...

Q: Washing machine cost $600.  You can buy on credit for 12 monthly payments of $52.74 each total cost ...

A: Answer:No, it was not considered as a best trade-off because, if you wait for one year the price of ...

Q: what is the formula for compounding interest?

A: Compound interest can be defined as the interest earned on principal amount and on all previous inte...

Q: I NEED PART 4 and MULTIPLE CHOICE PLEASE (BOLD PARTS AT THE END) Part 1: The CFO of Cruz, inc. is co...

A: PART 4Assumption:The computation of MIRR is based on the WACC rate at 12%

Q: A trasury security in which periodoc coupon interest payments can be seperate from eachother ad from...

A: The appropriate answer is option (a).The Treasury STRIPS is known as Separate Trading of Registered ...

Q: Your good friend is looking to buy a bond that pays semi-annual interest. The par value is $1,000 an...

A: Computation of bond price:Hence, the recommended bond price will be $1,085.84.

Q: ABC Trucking's balance sheet shows a total of noncallable $30 million long-term debt with a coupon r...

A: Hence, the correct answer is the option B. –0.44%

Q: Skolits Corp. issued 15-year bonds 2 years ago at a coupon rate of 7.6 percent. The bonds make semia...

A: Calculate the yield to maturity (YTM) as follows:MS - Excel --> Formulas --> Financials -->...

Q: Try to calculate the effective interest rate for a $1789 simple discount note at 5.25% for 15 months...

A: Computation of the effective interest rate:Hence, the effective interest rate is 5.62%.

Q: Scenario Probability Stock fund Rate of Return Bond fund Rate of Return Severe recession 0.05 -30 ...

A: Computation of variance and standard deviation of stock fund:

Q: You have a loan outstanding. It requires making five annual payments of $7,000 each of the end of th...

A: In order to remain indifferent between the two options,One large payment at the end of the loan’s te...

Q: What annual rate of return is earned on a $5,000 investment when it grows to $9,000 in five years? (...

A: Let r be the annual rate of return, earned on a $5,000 investment when it grows to $9,000 in five ye...

Q: 9.00060.O 0..0H 1- Suppose that you decide to buy a car for $25,767, including taxes and license fee...

A: Total cost to buy a car is $25,767, $8000 is the down-payment and the loan is of amount $17,767 (257...

Q: 6:05 IMG_0742.jpg X Wildhorse Company is considering buying a new farm that it plans to operate for ...

A:  Net present value (NPV): Net present value is one of the most applicable capital budgeting techniqu...

Q: Calculate the value of x for the cash flows below such that the equivalent total value in year 8 is ...

A: Equivalent value of a cash flow, Ct occurring at time t, at the end of year n = Ct x (1 + r)n - t wh...

Q: Sam Long anticipates he will need approximately $225,000 in 15 years to cover his daughter's college...

A: Click to see the answer

Q: You are a management trainee in one of the Manufacturing companies based in Johor, Malaysia. The com...

A: As a management trainee, the answer for the CFO question will be that it is not easy to identify a d...

Q: Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiann...

A: Following information’s are given in the question:

Q: You purchased a stock at a price of $22.  A year later the stock is worth $35, and during the year i...

A: Hence, return on the investment is $14.5.Return on investment is calculated by adding capital apprec...

Q: You are the CFO of Carla Vista, Inc., a retailer of the exercise machine Slimbody6 and related acces...

A: Incremental cash flow at the beginning of the project = -( initial investment in the store + initial...

Q: Debt Management Ratios Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.94 times at the end...

A: Debt to equity ratio = Debt / Equity = 1.94Debt = $ 10.60 million

Q: Question 3. A fixed rate bond with notional 1 pays annual coupons of c at times T1, T2, . . . , Tn w...

A:  Definition:A fixed rate bond with coupon c, notional N, beginning date, term length is and the matu...

Q: Automobiles had an average cost of $16,000 in 2013. Average cost of the same automobiles now is $20,...

A: Calculation of rate of increase for the automobiles between 2 time period: Rate of increase for the ...

Q: In 2018, Jake's Jamming Music, Inc. announced an ROA of 8.46 percent, ROE of 13.50 percent, and prof...

A: Return on assets and return on equity are also known as profitability ratios. These ratios show the ...

Q: What would my total be earning 5% compounded monthly for 12 years after that (without any additional...

A: Future value can be defined as the future worth of specified present amount at a future date at give...

Q: You were hired as a consultant to XYZ Company, whose target capital structure is  30% debt, 8% prefe...

A: target capital structure:Proportion of debt = Wd = 30%Proportion of preferred capital = Ws = 8% andP...

Q: Atlantic Corporation is the largest logging company in the north eastern part of the United States. ...

A: a.Calculate the value of the stock as follows:

Q: A health insurance policy pays 65 percent of physical therapy cost after a $200 deductible. In contr...

A: ) If a person had 10 physical therapy sessions with $50 cost, then according to the health insurance...

Q: Which of the following should be considered when a company estimates the cash flows used to analyze ...

A: The correct answer is the last option i.e. option E. The new project is expected to reduce sales of ...

Q: Executives at Microsoft are interested to get into the drone delivery business. Since it would take ...

A: Option 1: The present value is $40 million.

Q: Critically discuss the significance of including the factor of inflation in corporate finance calcul...

A: Inflation in general will impact the cash flows projected and used under capital budgeting analysis....

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financin...

A: Calculation of original loan paid off:The original loan paid off is $16,572.Excel Spreadsheet:

Q: O'Leary, Inc., is expected to maintain a constant 5.2 percent growth rate in its dividend indefinite...

A: Required rate of return on the stock is the sum of the company’s dividend yield and capital gains yi...

Q: Your firm is considering a one-year loan for $522,000. The fees are 2% of the loan amount and the in...

A: The lender deducts the fees upfront while disbursing the money, so effectivly the borrower get the p...

Q: Ben buys a house. He obtains a $220,000, 30-year mortgage at 5%. Annual property taxes $1,800, prope...

A: Calculate the monthly instalments as follows:

Q: Executives at Microsoft are interested to get into the drone delivery business. Since it would take ...

A: We need to use the concept of time value of money to solve the question. According to the concept of...

Q: If you disounted a set of positive real cash flows with a nominal discount rate and inflation were p...

A: Justification:Suppose the positive cash flows are discounted with the inflation rate, which is posit...

Q: Dudley Hill Golf Club's market-to-book ratio is currently 2.4 times and the PE ratio is 6.70 times. ...

A: Computation of book value per share and earnings per share:Hence, the book value per share is $8.85 ...

Q: An investment has a cost of $3500. The investment will have a payout at the end of the first year.  ...

A: Approach: Let's assume the desired minimum payout is P.We will roll out the yearly payout projection...

Q: Suppose you have two options for buying total 500 stocks.      A:   You can buy 1 stock from each of...

A: Diversification can be described as a way of investing in such a manner that reduces overall risk fo...

Q: Part 1: The CFO of Cruz, inc. is considering Projects A and B which are considered equally risky; th...

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...

Q: I am having some trouble with a similar problem except in this problem you have to determine the dis...

A: The discount rate refers to the interest rate charged on the 200​ day note.

Q: Executives at Microsoft are interested to get into the drone delivery business. Since it would take ...

A: (a) Calculation of present values of two options:Answer:Net present values of both options are $40 m...

Q: What is Internal Rate of Return - All Cash Deal?  Please provide examples

A: Internal Rate of Return (IRR)IRR is the annualized effective compounded rate or return that can be e...

Q: Need help with fuel savings for both car and truck

A: Calculation of number of gallons consumed for one year before upgradation: