"Dividend Yield" Essays and Research Papers

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Dividend Yield

Capital Q1: Percy Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company’s outstanding bonds is 9% and the company tax rate is 40%. Percy’s CFO has calculated the company’s WACC as 9.96%. What is the company’s cost of common equity? Q2: Tunney Industries issued preferred stock at a price of $47.50 a share. The issue is expected to pay a constant annual dividend of $3.80 a share. What is the company’s cost of preferred stock, Kp? Q3: Javit & Son’s...

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Ratios

(Operating Profit) x 100 (ROCE) Capital Employed Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity Investment Ratios Earnings per Share (EPS) = Net Income – Dividends on preferred stock Average Outstanding Shares Price/Earnings Ratio (P/E) = Market Price of Share/EPS Aviation Industry Specific Ratios… Available Seat Miles = Total No. of...

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Corporate Finance Quiz

0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments. (Chapter 2) a. $857.96 b. $949.24 c. $1057.54 d. $1000.00 Response: PV = (40/1.05) + (40/(1.05^2)) +. . . + (1040/(1.05^6)) = $949.24 Answer B 4. Cisco will pay a dividend of $5 per share next year, and the dividends payout ratio is 50%. Dividends are expected to grow at a constant rate of 8% forever...

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Wenyu Li MINI CASE

Voting right. Common stockholders can attend at annual general meeting to cast vote or use a proxy b. (1) Write out a formula that can be used to value any stock, regardless of its dividend 
pattern.
 (2) What is a constant growth stock? How are constant growth stocks valued?
 A constant growth stock is a stock whose dividends are expected to grow at a constant rate in the foreseeable future. This condition fits many established firms, which tend to grow over the long run at the same rate as the economy...

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The Prodigal Tourist Returns: Analysis

healthcare no tiffany sito ufficiale longer work. No matter what stage you are at in your life there are some constants. Depending on the insurance plan you choose, you may be fully or partially covered in the areas listed above. Best Dividend Paying Stock Lists By Dividend Yield Stock, Capital, Investment. nike tn I love it to screen stocks by value and chaussure louboutin solde fundamentals. It gives hogan outlet sito ufficiale me the possibility to evaluate stocks and compare them by its data. The public...

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Berkshire Instruments

of Debt – To find the cost of debt, we use the details of the bonds issued by Rollins Instruments. The bonds have 20 years to maturity, pay interest at 9.3%, have a par value of $1,000 and are currently selling for $890. The cost of debt is the yield to maturity (YTM) of the bonds. The YTM is the discount rate that will make the present value of interest and principal equal to the price today. The interest amount per year is $93 and the principal amount is $1,000. Using trial and error method of...

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F515 Homework Week 4

Valuation Boehm Incorporated is expected to pay $1.50 per share dividend at the end of this year (i.e., D (1) = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, r(s), is 15%. What is the value per share of Boehm’s stock? 1.50 / (0.15 – 0.07) = $18.75 7-4 Preferred Stock Valuation Nick’s Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share...

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Cost of Capital

recent (Oct 30 2009) stock price (Po) = $14.45 • Market value of equity or market capitalisation = $28,260,000000 • Shares outstanding (28,260,000,000/14.45) = 1,955,709,343 • No dividend is paid recently. In this case, the dividend discount model cannot be used • The three-month treasury bill yield = 0.03% Cost of Equity Risk free rate (Rf)= 0.03% Systematic risk of Equity (Beta, BE) = 1.36 Assuming market risk premium = 8.6% Using the Capital Asset Pricing Model (CAPM), ...

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BVFA

pace of WOW after it has been taken over by the Wesfarmer Company. In the latest reported from the newspaper Herald Sun shows that Coles sales up 6% compare to WOW only up 3.2%. The fourth key assumption to be made about is the net dividend payout ratio, I used dividend payout over the NOPAT and get 53%. Another assumption I make to forecast WOW’s income statement for 2011 relates to the after tax cost of debt. Although the firm is in the middle of completing a share buyback ($325M in 2010 and...

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lsson

sold for $25 one year ago, and it is currently selling for $28. Serox pays a $1.10 dividend per year. What was the rate of return for owning Serox in the most recent year? (Round to the nearest percent.) 32% 40% 12% 16% Multiple Choice Question 62 Bond price: Regatta, Inc., has six-year bonds outstanding that pay a 8.25 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 6.875 percent. What should the company's bonds be priced at today...

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