Dividend yield

1. Krell Industries has a share price of $22.00 today. If Knell is expected to pay a dividend of $0.88 this year and its stock price is expected to grow to $23.54 at the end of the year, what is Krell’s dividend yield and equity cost of capital?

2. No Growth Corporation currently pays a dividend of $0.50 per quarter, and it will continue to pay this dividend forever.

What is the price per share of No Growth stock if the firm’s equity cost of capital is 15% (effective annual rate)?

You just purchased a share of Northstar Sports for $100. You expect to receive a dividend of $5 in one year.

If you expect the price after the dividend is paid to be $110, what total return do you expect to earn over the year?

What do you expect to be your dividend yield? What do you expect to be your capital gain rate?

Solution:

Looking for help with your homework?
Grab a 30% Discount and Get your paper done!

30% OFF
Turnitin Report
Formatting
Title Page
Citation
Place an Order

Calculate your paper price
Pages (550 words)
Approximate price: -