Project #73269 - Finance

The next dividend payment by Blue Cheese, Inc., will be $2.00 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. The stock currently sells for $40 per share.

   

What is the dividend yield? (Round your answer to 2 decimal places. (e.g., 32.16))

Dividend yield

%  

What is the expected capital gains yield?

Capital gains yield

%  

Suppose you know that a company’s stock currently sells for $68 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 a capital gains yield and a 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? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

 

 

Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 11 percent and the company just paid a dividend of $3.10, what is the current share price? (Round your answer to 2 decimal places. (e.g., 32.16))

 

 

Thirsty Cactus Corp. just paid a dividend of $2.70 per share. The dividends are expected to grow at 19 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 14 percent, what is the price of the stock today? (Round your answer to 2 decimal places. (e.g., 32.16))

 

Chartreuse County Choppers Inc. is experiencing rapid growth. The company expects dividends to grow at 24 percent per year for the next 11 years before leveling off at 5 percent into perpetuity. The required return on the company’s stock is 15 percent. If the dividend per share just paid was $1.77, what is the stock price? (Round your answer to 2 decimal places. (e.g., 32.16))

 

Lane, Inc., has an issue of preferred stock outstanding that pays a $5.15 dividend every year in perpetuity. If this issue currently sells for $92 per share, what is the required return? (Round your answer to 2 decimal places. (e.g., 32.16))

 

Subject Business
Due By (Pacific Time) 06/12/2015 12:00 am
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