We see that as dividend is constant, we can apply the formula of constant dividend to get total return
total return=dividend/price=4.65/203.10=2.28951%
2. Pelican Plastics stock is valued at $203.10 per share. The company pays a constant annual...
The James River Co. pays an annual dividend of $1.50 per share on its common stock. This dividend amount has been constant for the past 15 years and is expected to remain constant in the future. Given this, one share of James River Co. stock today: A. is basically worthless as it offers no growth potential. B. has a market value equal to the present value of $1.50 paid one year from today. C. is valued as...
Kwak Motors preferred stock pays an annual dividend of $3.50 per share. If the stock is selling for $50 per share, what would be the annual rate of return earned of Kwak Motors preferred stock? A) 1.43% B) 4.35% C) 7.00% D) 14.29% you expect that three years from today, periwinkle corporation will begin paying its first ever dividends of $4.00 a share, an amount that will be held constant. if you require a rate of return of 10%. what...
A stock current pays an annual dividend of $10 per share per year. The dividend is expected to grow 10% annually. Using the dividend growth model and a required rate of return of 14% what is the price of the stock? $100. $275 $22 78.57 $71.43
Breakfast Hut pays a constant annual dividend of $2 per share. How much are you willing to pay for one share if you require a 10 percent rate of return?
1. Mark owns a stock with a market price of $53 per share. This stock pays a constant annual dividend of $1.64 a share. If the price of the stock suddenly falls to $41 a share, you would expect the: I. dividend yield to increase. II. dividend yield to decrease. III. growth rate to increase. IV. growth rate to decrease. a) II only b) I and III only c) II and IV only d) III only e) I only 2....
A company's stock pays an annual dividend that is expected to increase by 9% annually. The stock commands a market rate of return of 12% and sells for $60.50 a share. What is the expected amount of the next dividend to be paid on the stock? Battery Co. will pay an annual dividend of $2.08 a share on its common stock next year. Last week, the company paid a dividend of $2.00 a share. The company adheres to a constant...
The Flower & Gift Co. pays a constant annual dividend of $1.74 a share and currently sells for $15.00 a share. What is the total rate of return for this firm's stock? Question 6 options: 3.87 percent 4.64 percent 5.80 percent 10.40 percent 11.60 percent
Company Alpha common stock sells for $39.50 a share and pays an annual dividend that increases by 4 percent annually. The market rate of return on this stock is 8.45 percent. What is the amount of the last dividend paid?
A preferred stock pays an annual dividend of $4.70 and sells for $58.20 per share. What is the rate of return? 8.08 percent 8.54 percent 9.01 percent 7.88 percent
Maynard Inc. preferred stock pays an annual dividend of $7 per share. Which of the following statements is true for an investor with a required return of 9%? Page A) The value of the preferred stock is $7 because the dividend is fixed at $7 each year. B) The value of the preferred stock is $63.00 per share. C) The value of the preferred stock is $77.78 per share. D) The value of the preferred stock is $6.30 per share...