Retractable Technologies just Raid a dividend of Do = $3.30 and sells for $40 per share....

Question

Question

Answer 1

Answer #1

Expected return= (expected dividend/current Price)+ growth rate

Expected return = (($3.30*(1+5%))/$40) + 6%

Expected return = 8.75% + 6%

Expected return = 14.75%

Answer 2

Similar Homework Help Questions

Retractable Technologies just paid a dividend of D_0 = $2.20 and sells for $40 per share....

Retractable Technologies just paid a dividend of D_0 = $2.20 and sells for $40 per share. If the company has a constant growth rate of 6% per year, what is their total expected return?
Help 5 pts Kelso Corporation just paid a dividend of Do- $0.90 per share, and that...

Help 5 pts Kelso Corporation just paid a dividend of Do- $0.90 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.70, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price? Your answer should be between 8.22 and 37.40, rounded to 2 decimal places, with no special characters. D Question 15 5 pts...
Astock has a required rate of return of 10.25%, and it sells for $61.50 per share....

Astock has a required rate of return of 10.25%, and it sells for $61.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D? Your answer should be between 1.32 and 4 56. rounded to 2 decimal places with no special characters.

Holtzman Clothiers's stock currently sells for $40 a share. It just paid a dividend of $1...

Holtzman Clothiers's stock currently sells for $40 a share. It just paid a dividend of $1 a share (i.e., D0 = $1). The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year from now? Round your answer to two decimal places. $ What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations. %
DQuestion 13 5 pts Phoenix Solar is expected to pay a dividend of $3.60 in the...

DQuestion 13 5 pts Phoenix Solar is expected to pay a dividend of $3.60 in the upcoming year, and their stock is trading in the market today at $60 per share. Dividends are expected to grow at the rate of 7.2% per year. If the risk free rate of return is 4% and the expected return on the market portfolio is 12%, what is the stock's beta? | Your answer should be between 0.34 and 2.12, rounded to 2 decimal...
3. Holtzman Clothiers's stock currently sells for $40 a share. It just paid a dividend of...

3. Holtzman Clothiers's stock currently sells for $40 a share. It just paid a dividend of $2.25 a share (i.e., D0 = $2.25). The dividend is expected to grow at a constant rate of 5% a year. What stock price is expected 1 year from now? Round your answer to two decimal places. $ What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations. %

Santa Klaus Toys just paid a dividend of $3.30 per share. The required return is 9.6...

Santa Klaus Toys just paid a dividend of $3.30 per share. The required return is 9.6 percent and the perpetual dividend growth rate is 4.2 percent. What price should this stock sell for five years from today?
The Pierce Co. just issued a dividend of $2.35 per share on its common stock. The...

The Pierce Co. just issued a dividend of $2.35 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $44 a share, what is the company’s cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The Drogon Co. just issued a dividend of $2.70 per share on its common stock. The...

The Drogon Co. just issued a dividend of $2.70 per share on its common stock. The company is expected to maintain a constant 5.6 percent growth rate in its dividends indefinitely If the stock sells for $54 a share, what is the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity

The Pierce Co. just issued a dividend of $2.35 per share on its common stock. The...

The Pierce Co. just issued a dividend of $2.35 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $44 a share, what is the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %