Suppose you expect International Computers Inc (ICI) to pay a dividend of $10 per share in...
Suppose you expect International Computers Inc (ICI) to pay a
dividend of $10 per share in
one year and to trade for $120 per share just after that dividend
payment. If ICI is currently
trading at $100 per share and investments with equivalent risk to
ICI’s stock have an
expected return of 30%, the capital gain rate is closest to?
Homework Answers
CAPITAL GAIN RATE =(P1-P0)/P0
P0 = 100, P1 = 120
CAPITAL GAIN RATE =(P1-P0)/P0 = (120-100)/100 = 20%
Answer : 20% (Thumbs up please)
Add Answer to:
Suppose you expect International Computers Inc (ICI) to pay a
dividend of $10 per share in...
Suppose you are thinking of purchasing the stock of TTYL Widget, Inc. You expect it to pay...
Suppose you are thinking of purchasing the stock of TTYL Widget, Inc. You expect it to pay a $3.00 dividend in one year. You believe you can sell the stock for $21.00 at that time. You require a return of 15% on investments of this risk. What is the maximum you would be willing to pay? Suppose you are thinking of purchasing the stock of TTYL Widget, Inc. In addition to the dividend and price from year one you expect it to pay a $3.30...
15) Lunar Adventures Inc is expected to pay a dividend of $1.40 per share at the end of this year and expected to pay a...
15) Lunar Adventures Inc is expected to pay a dividend of $1.40 per share at the end of this year and expected to pay a dividend of $1.50 per share at the end of the second year. As well, you expect the stock price to be $25.00 at the end of the second year. If the firm's equity cost of capital is 10% and you plan to hold the stock for one year, the price you would expect to be...
2. InvestPros, Inc., just paid a dividend of $3.00 per share. You expect the dividend to...
2. InvestPros, Inc., just paid a dividend of $3.00 per share. You expect the dividend to increase by 20% next year, 10% the following two years, and then 4% thereafter. If you require a rate of return of 10%, what is the most you should be willing to pay for a share of InvestPros stock?
(a) Union Pacific currently does not pay a dividend. You expect that the company will begin...
(a) Union Pacific currently does not pay a dividend. You expect that the company will begin paying a dividend of $2 per share in 6 years, and you expect dividends to grow indefinitely at a 3.5% rate per year thereafter. If the required rate of return is 12 percent, how much is the stock currently worth? [8 Points) (b) Walmart Inc. just paid a dividend of do = $2.08 per share. The dividends are expected to grow at a rate...
Dexter International is expected to pay a dividend next year of $2.10 per share. Dexter has...
Dexter International is expected to pay a dividend next year of $2.10 per share. Dexter has a beta of 1.00 and the market rate of return is 12% and the risk free rate is 3%. What is the dividend yield if an investor purchases the stock at $41.68 a share? Group of answer choices 5.0% 6.0% 9.0% 12.0%
The next dividend payment by Grenier, Inc will be $2.04 per share. The dividends are anticipated...
The
next dividend payment by Grenier, Inc will be $2.04 per share. The
dividends are anticipated to maintain a growth rate of 7 percent
forever. If the stock currently sells for $41.00 per share, what is
the dividend yield? What is the expected capital gains yield?
The next dividend payment by Grenier, Inc., will be $2.16 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $44 per share,...
You expect KT industries (KTI) will have earnings per share of $ 4 this year and...
You expect KT industries (KTI) will have earnings per share of $ 4 this year and expect that they will pay out $ 1.75 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 14% and their equity cost of capital is 10%. The value of a share of KTI's stock is closest to: A.$32.94 B.$98.82 C.$82.35 D.$ 49.41
You expect KT industries (KTI) will have earnings per share of $ 4 this year and...
You expect KT industries (KTI) will have earnings per share of $ 4 this year and expect that they will pay out $ 1.00 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 15% and their equity cost of capital is 12%. The expected growth rate for KTI's dividends is closest to: a: 6.8 b. 11.3 c.4.5 d. 9
Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's...
Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 5% forever. Its stock price is $37.4 and its beta is 1.3. The risk-free rate is 2% and the expected return on the market portfolio is 8%. Part 1 What is the best guess for the cost of equity?
ARTIC Mining Ltd.'s stock is expected to pay an annual dividend of $0.80 per share indefinitely. If...
ARTIC Mining Ltd.'s stock is expected to pay an annual dividend of $0.80 per share indefinitely. If the stock is currently trading at a price of $18.90 per share, and the firm's equity cost of capital is 6.4%, what is the price per share that investors should be expected to pay in 5 years (into the future)?
15) Lunar Adventures Inc is expected to pay a dividend of $1.40 per share at the end of this year and expected to pay a dividend of $1.50 per share at the end of the second year. As well, you expect the stock price to be $25.00 at the end of the second year. If the firm's equity cost of capital is 10% and you plan to hold the stock for one year, the price you would expect to be...
(a) Union Pacific currently does not pay a dividend. You expect that the company will begin paying a dividend of $2 per share in 6 years, and you expect dividends to grow indefinitely at a 3.5% rate per year thereafter. If the required rate of return is 12 percent, how much is the stock currently worth? [8 Points) (b) Walmart Inc. just paid a dividend of do = $2.08 per share. The dividends are expected to grow at a rate...
The
next dividend payment by Grenier, Inc will be $2.04 per share. The
dividends are anticipated to maintain a growth rate of 7 percent
forever. If the stock currently sells for $41.00 per share, what is
the dividend yield? What is the expected capital gains yield?
The next dividend payment by Grenier, Inc., will be $2.16 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $44 per share,...
Most questions answered within 3 hours.
-
Rhonda Clark, a Slippery Rock, Pennsylvania, real estate
developer, has devised a regression model to help...
asked 54 seconds ago -
SO₂Cl₂(g) ⇌ SO₂(g) + Cl₂(g) Kp = 2.39 at 100°C. A quantity of
SO₂Cl₂ was introduced...
asked 24 minutes ago -
1. Using the ArrayList add() method, write the statement to
insert “July” in the first position...
asked 26 minutes ago -
Find the value of z such that 62.9% of the total area is to the
left...
asked 29 minutes ago -
How many moles are in 169 kg of Au?
asked 37 minutes ago -
If
a measure entity (thing) is a vector how many different types of
information are required...
asked 41 minutes ago -
A speeding driver sees a police officer, hits her brakes, and
changes her speed from 45...
asked 41 minutes ago -
Calculate the Molarity, M, of a solution that was prepared by
dissolving 734 grams of lithium...
asked 43 minutes ago -
Give a chemical reaction for the reaction of 2-butanol with
chromium trioxide
asked 54 minutes ago -
Community relations are a large part of business outreach and
growing a brand. If you've been...
asked 1 hour ago -
One way to measure the amount of energy that is expended during
exercise is to use...
asked 58 minutes ago -
What is the Erikson 8 stages of development theory’s relevance
and application to individuals, families, groups,...
asked 1 hour ago