Q: What are the dividend yield, capital gains yield, and total percentage return?
A: The dividend yield is the return on security generated through the distribution of dividends. It is…
Q: Ovit, Inc., has preferred stock with a price of $20 and a dividend of $1.50 per year. What is its…
A: A ratio that is used to measure the amount of cash dividends that is paid to the holder relative to…
Q: Suppose Sohar, Inc., reports earnings per share of around (OMR 0.75). If Sohar is in an industry…
A: P/E Ratio is also known as the price-earning ratio which states the comparison of market price and…
Q: (Common stock valuation) Gilliland Motor, Inc., paid a $3.94 dividend last year. If Gilliland's…
A: Last dividend (D0) = $ 3.94 Return on equity = 15% Retention rate = 24% Growth rate (g) = Return on…
Q: Hot Teas common stock is currently selling for $38.97. The last annual dividend paid was $1.26 per…
A:
Q: You have found the following historical information for DEF Company: Year 2 Year 3 Year 4 Year1…
A: INTRODUCTION: Expcted growth rate 7% Year Stock Price EPS 1 47.59 2.45 2 52.42 2.68 3 56.88…
Q: A company expects EPS to be $8.81 next year. The industry average P/E ratio is 34.84 and Enterprise…
A: The method of comparables means the relevant ratios of industry, peer groups or similar kind of…
Q: what is the yield on a share of preferred stock, which has a $100 par value and is currently selling…
A: Given information: Par value of preferred stock is $100 Current price of stock is $140 Annual…
Q: A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per…
A: Total yield is divided into Dividend yield and % capital gain yield
Q: What is the current price of a share of stock when last year’s dividend was P3.00, the growth rate…
A: This question is based on dividend growth model, according to which the price of a stock is given by…
Q: This question is based on the following information: Pitts Company’s common stock is selling at P…
A: Cost of new common stock is defined as the minimum rate that is needed to be earned in order to…
Q: For the past 15 years, the P/E ration of North/South Travel has been between 28 and 30. If…
A: Price to Earnings Ratio ranges between 28 - 30 Price to Earnings Ratio = Stock Price / Earning Per…
Q: 4. Tannery Worldwide’s common stock is currently selling for $48 a share. If the expected dividend…
A: Rate of return is equal to the expected dividend divided by stock price plus growth rate.
Q: Consider the following case of Acme Manufacturing Corporation: Acme Manufacturing Corporation pays…
A: Preference Stock is type of capital which are paid fixed amount of dividend each year as prescribed…
Q: Consider the following case of Marston Manufacturing Company: Marston Manufacturing Company pays an…
A: Share price: Share price is the current market price of the share. It is the price of the share at…
Q: Kuih Bakar Berhad common stocks are currently selling for RM32.35. The last annual dividend paid was…
A: The percentage by which the dividend grows from the previous dividend paid by the company is called…
Q: A financial advisor claims that a particular share earned a total return of 10% last year. During…
A: Since more than one question is posted at a time, so the answer or only first question is provided.…
Q: McCracken Roofing, Inc., common stock paid a dividend of $1.34 per share last year. The company…
A: The required rate of return can be calculated as per the dividend discount model.
Q: National Storage paid a dividend of $1.90 per share last year. If yesterday's closing price was…
A: Please see the next step for the solution
Q: You bought a stock one year ago for $50.00 per share and sold it today for $55.00 per share. It…
A: Return from dividend yield can be calculated by using this equation Return from dividend yield =…
Q: A share of Koko's common stock just paid a dividend of $1.00. If the expected long-run growth rate…
A: Given information: Dividend paid (D0) : $1 Growth rate (g) : 5.4% Required return (r) : 11.4%
Q: What is the current price of a share of stock when the current dividend is $4.75, the growth rate is…
A: Current price of a share of stock is referred as current price or value of the share which is the…
Q: A share of Green Inc.'s common stock just paid a dividend of D0 = $1.00. If the expected long-run…
A: Dividend Discount model would be providing the stock price and required rate of return on the basis…
Q: Stock ABS has a dividend yield of 1.5 percent. Last year, the stock price fell from P65 to P60. What…
A: The stock price is the price or value that is given for each unit of share that is issued by a…
Q: Chris Luna is researching the DuPont Corporation. The following is the current stock listing:…
A: PE ratio is also known as the price to earnings ratio, it determines the current market price of the…
Q: .If a stock pays a Tk.6 dividend this year, and the dividend has been growing 4%annually, then what…
A: Current Dividend = Tk.6 Growth rate = 4% Required rate of return = 11%
Q: Suppose you know a company's stock currently sells for $80 per share and the required return on the…
A: Stock Price = $80 Required rate of return = 12%
Q: What is earning per share? What is price- earning patio? what is dividends per share ?What is…
A: Earnings per share (EPS) refers to the profit per outstanding share of tock of a public company,…
Q: The price of the stock of Clarkson Corporation went from P50 to P56 last year. In the following…
A: Initial Stock Price at time of purchase = 50 Stock Price at beginning of current year = 56 Dividend…
Q: Suppose a company just paid dividnd of $2.19.The dividend is expected to grow at 5.99% each year. If…
A: As per Dividend Growth model, Current stock Price (P0) = D1 / (ke-g) Where, D1 = D0 *(1+g) Ke…
Q: Suppose you know that a company's stock currently sells for $53.47 per share and the required return…
A: It is mentioned in the question that total return is equal divided into capital gain yield and…
Q: Last year, Rec Room Sports reported earnings per share of $8.50 when its stock price was…
A: Price Earning (P/E) Ratio shows the dollar amount that an investor can expect to invest in order to…
Q: What is the rate of return on a stock that currently sells for GH₵ 36 and is expected to sell for…
A: Dividend yield refers to the ratio of the annual dividend to the current share price. The dividend…
Q: One year ago, you purchased a stock at a price of $62.67 per share. Today, you sold your stock at a…
A: Stock purchase price = $ 62.67 Capital loss = $ 13.34 Total loss = 18.87% Total loss amount =…
Q: A company expects EPS to be $2.52 next year. The industry average P/E ratio is 23.99 and Enterprise…
A: The price to earning ratio is calculated as the ratio of market price of stock and earning per…
Q: You recently purchased a stock that is expected to earn 25 percent in a booming economy, 10 percent…
A: Probability Return on stock Boom 10% 25.00% Normal 75% 10.00% Recession (100%-(10%+75%) 15%…
Q: The total stock ROI (return of investment) is defined to be the sum of appreciation in price and…
A: Dividends are the part or share of profits being distributed to investors in form of returns. Also,…
Q: Suppose you know that a company's stock currently sells for $53.47 per share and the required return…
A: The dividend is the amount that is the return received to the shareholders from the organization on…
Q: Rand Corp's stock price at the end of last year was $40.00, and its book value per share was $24.50.…
A: A ratio that helps investors to evaluate the company’s performance by comparing the stock’s market…
Q: What is the component cost of preferred stock for a company that has $20 million in preferred stock…
A: Relevant information: Price of stock : $75 (Par value is used while computing the cost of preferred…
Q: What is the value of a preferred stock thst pays an annual dividend of $4.50 a share and competitive…
A: Preferred stock are the stock which has property of both common stock and debt. It has higher claims…
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…
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- The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.CALCULATING THE WACC Here is the condensed 2019 balance sheet for Skye Computer Company (in thousands of dollars): Skyes earnings per share last year were 3.20. The common stock sells for 55.00. last years dividend (D0) was 2.10, and a flotation cost of 10% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 9%. Skyes preferred stock pays a dividend of 3.30 per share, and its preferred stock sells for 30.00 per share. The firms before-lax cost of debt is 10%, and its marginal tax rate is 25%. The firms currently outstanding 10% annual coupon rate, long-term debt sells at par value. The market risk premium is 5%, the risk-free rate is 6%, and Skyes beta is 1.516. The firms total debt, which is the sum of the companys short-term debt and long-term debt, equals 1.2 million. a. Calculate the cost of each capital component, that is, the after-tax cost of debt, the cost of preferred stock, the cost of equity from retained earnings, and the cost of newly issued common stock. Use the DCF method to find the cost of common equity. b. Now calculate the cost of common equity from retained earnings, using the CAPM method. c. What is the cost of new common stock based on the CAPM? (Hint: Find the difference between r1 and rs as determined by the DCF method, and add that differential to the CAPM value for rs.) d. If Skye continues to use the same market-value capital structure, what is the firms WACC assuming that (1) it uses only retained earnings for equity and (2) if it expands so rapidly that it must issue new common stock?Rand Corp's stock price at the end of last year was $40.00, and its book value per share was $24.50. What was its Market/Book ratio?
- One year ago, KJ Industries stock sold for $58 a share. Over the past year, the stock has returned 19.0 percent with half of that return coming from dividend income. What is the current price of this stock? $69.02 $63.51 $52.49 $46.98Wayne, Inc.'s outstanding common stock is currently selling in the market for $54. Dividends of $3.16 per share were paid last year, return on equity is 35 percent, and its retention rate is 26 percent. a. What is the value of the stock to you, given a required rate of return of 17 percent? b. Should you purchase this stock?The original price of a stock is Php 32.75 and its current price is 39.75. For the past year, the company issued a Php 7.25 dividend per share. What is the total stock ROI for the past year?
- Last year, Rec Room Sports reported earnings per share of $8.50 when its stock price was $212.50.This year, its earnings increased by 20 percent. If the P/E ratio remains constant, what is likely tobe the price of the stock? ExplainLast year, Big W Company reported earnings per share of $2.50 when its stock was selling for$50.00. If its earnings this year increase by 10 percent and the P/E ratio remains constant, whatwill be the price of its stock? Explain.A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $6 per share and sells for $87. 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 $72. What are the dividend yield and percentage capital gain in this case?
- 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?What is earning per share? What is price- earning patio? what is dividends per share ?What is dividend Yield? When Common stock $10 par value, preferred $5 stock, $25 par. The income was $1250000 and the declared dividends on common stock were$8000000 for the current year. the market price of common stock is $40 per ShareOne year ago, Barkley's stock sold for $28 a share. During last year, Barkley's paid $1.23 per share in dividends and saw its stock price increase by 7 percent for the year. Today, the firm announced that it will pay $1.30 per share in dividends this year. What do you know with certainty about the performance of Barkley's stock for this year? Multiple Choice The capital gains yield will be positive. The dividend yield for this year will be lower than it was last year. The total rate of return will be lower this year than it was last year. The total rate of return will be higher this year than it was last year. The dividend yield for this year will be higher than it was last year.
