A company that paid a dividend last year does not necessarily have to pay a dividend this year. True False
Answer is True.
The dividend will be paid only if the company makes a profit and declares a dividend. This is not the case with preference shares. ... Some preference shares are non-cumulative -- if the company can't pay the dividend for one particular year, the dividend for that year lapses.
So the payment of dividend depends upon on what type of share you are paying.
Thank you.
A company that paid a dividend last year does not necessarily have to pay a dividend...
After paying a dividend of $1.90 last year, a company does not expect to pay a dividend for the next year. After that it plans to pay a dividend of 6.17 in year 2 and then increase the dividend at a rate of 3 percent per annum in years 3 to 6. What is the expected dividend to be paid in year 4?
The ABC Value Company paid a dividend last week of $2/share. Their dividend for next year is expected to be 100% higher, and 50% higher for the following year. In the third year and each year thereafter, the dividend is expected to grow by 6%. If your client has a required rate of return of 10%, what is the most that they would pay to own ABC Value Co?
3. A company paid a $4.00 dividend last year. Assume that the company's ROE is 20.0%, its retention rate is 40% and the required rate of return is 12.0%. Calculate the Stock Price ($X.XX): (9 points) 4. A company is expected to pay a $2.00 dividend next year. The required rate of return is 10.0%, and the current stock price is $40.00. Calculate the expected Constant Growth Rate (X.X%): (9 points) 5. A company's current stock price is $50.00. Dividends...
Cullumber, Inc., paid a dividend of $4.40 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 20.0 percent, what is the current value of the stock? (Round answer to 2 decimal places, e.g. 15.25.)
Sunland, Inc., paid a dividend of $3.69 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 12.0 percent, what is the current value of the stock? (Round answer to 2 decimal places, e.g. 15.25.) Current value $
Moderate Growth Company paid a dividend last year of $2.45. The expected ROE for next year is 13%. An appropriate required return on the stock is 11%. If the firm has a plowback ratio of 56%, what should the dividend in the coming year be? (Round your answer to 3 decimal places.) Dividend
1. Tellite Ltd, a telecommunication company, did not pay a dividend in the last financial year. However, the company has indicated that it expects to earn $1 per share in this financial year and to pay out 20% of these earnings in dividends. Financial analysts expect that Tellite's earnings per share and dividend per share will grow at a rate of 10% a year. The rate of return required by investors has been estimated at 12% per annum. Estimate the...
1. Moderate Growth Company paid a dividend last year of $2.10. The expected ROE for next year is 13%. An appropriate required return on the stock is 11%. If the firm has a plowback ratio of 63%, what should the dividend in the coming year be?
Halo Company just paid a dividend of $2 today, and is expected to pay a dividend in year 1 of $2.7, a dividend in year 2 of $2.2, a dividend in year 3 of $3.1, a dividend in year 4 of $3.6, and a dividend in year 5 of $4.9. After year 5, dividends are expected to grow at the rate of 0.06 per year. An appropriate required return for the stock is 0.12. Using the different-stage growth model, the...
The company is expected to pay its dividend today of $2.50. One year ago they paid a dividend of $2.20. You expect dividends to continue to grow constantly at the same rate as the past year. The risk free rate is 4%, the return on the market is 12% and the stock's Beta is 1.5. What is your assessment of the stock’s price today according to the dividend growth model? Select one: a. $100.60 b. $120.19 c. $105.77 d. $126.75...