answersLogoWhite

0


Best Answer

132

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: A stock currently sells for 30 per share and pays 1.00 per year in dividends What is an investor's valuation of this tock if he expects it to be selling fo 37 in one year and requires 12 percent r?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

How can you find someone with their last known address in nyc?

You can hire a skiptracing agency to investige what matter it is that requires you contact the person and locate where they currently reside.


Benefits of the Highest Dividend Paying Stocks?

Investing in the highest dividend paying stocks pays off in the long run for an investor. Of course, dividends are usually paid out on a quarterly basis. An investor can reap the rewards of these regular payments and benefit from the capital gains too. The opportunity for long-term financial success is more than possible here. Undoubtedly, careful and long-term investing is the key to success. Nobody should assume they cannot take advantage of all dividends have to offer in this day and age. Typically, the highest dividend paying stocks come from companies that are worth quite a lot of money. The stocks themselves might cost a bit too. An individual investor must be prepared to spend some money in order to earn this regular return. Focusing upon stocks that are likely to grow is always a smart idea. Obviously, no company is required to offer dividends, and a period of financial trouble can cause any business to do away with these payments. Therefore, investors must be careful when focusing upon dividends in their portfolio. Certain companies are more likely than others to offer high dividends on a quarterly or annual basis. For instance, banks and technology companies tend to offer great dividends and capital gains alike. An investor should focus upon these investments as long as they are considered strong bets in the long run. Nobody should invest in a company that is likely to see a negatively fluctuating dividend on a regular basis. Without a doubt, some stocks are more likely to perform strongly and keep a high dividend across many years without issues. For the most part, the highest dividend paying stocks are easy to locate because they are commonly listed through investing publications. A person should not ignore the potential for dividends to create a solid passive income for the years to come. Some investors could almost live off their annual dividend payments. Reaching that point requires time and wise investments, so a person should keep that in mind. In the end, success is never guaranteed with investments. Still, a wise investor can build success and passive income over the long term.


In later stages of a business that requires a lot of funding the entrepernuers can seek financing from?

For later stage funding, entrepreneurs can seek fund from outside investors like Michigan Pre-Seed Capital Fund, Ann Arbor and Eastern Washtenaw County Micro Loan Programs, Venture Capital, etc.


Where can one find information about how to finance a business online?

One can find how to finance a business online by checking out the Angel Network. The Angel Network has a list of investors who are willing to add cash to a business venture that requires financing. Also, the local Chamber of Commerce is a place where business can get information about how to get start up capital for an example to finance a business online.


How does one qualify for a FHA Refinancing Loan?

One can qualify for a FHA Refinancing Loan depending on the loan one requires. This will depend on whether one has an existing mortgage and if it is in good standing order, if one has any credit issues and that one is currently employed.

Related questions

What type of funding requires that the business owner share ownership with investors?

Equity funding does.


What is the noun that requires an apostrophe in the sentence Several investors questions were answered?

investor's The apostrophe s shows possession


How did Bernard Madoff defraud investors?

A Ponzi scheme is a fraudulent investmentoperation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going.


Why does the value of a share depend on dividends?

One of the most commonly made mistakes is that people relate the dividends paid to the financial health of the company. Let me say that more dividends paid does not mean comapny is doing good and vice versa. Generally, if the company pays less dividend because it requires that money for a new project which in turn will add to company growth. Thus stock price increases. If company does not have any new projects and still cut on dividends than stock price may go down. In short, if company can grow faster than the markets than it should give less dividends. However, if company is growing slower than the markets than it should give more dividends so that people can invest in markets and earn more. If comapny does not follow this logic than its stock price reduces.


Dividend Histories Are Essential To Income Investing?

Investors seeking high dividends often do not give any thought to the stability of those dividends or the commitment of a company to continue paying them. Dividends are highly valued because they can supplement interest income from bonds and rental income from real estate. At times when interest rates and rents are low, dividend payments can be quite high, allowing the investor to sustain a level of income not otherwise possible. Analyzing a company's dividend statements and policy is accordingly one of the most important activities an investor performs. An investor must know beyond a shadow of a doubt that a company has paid dividends in the past and will pay them in the future. When a company makes profits from its activities, the management must choose what to do with them. The company can reinvest its profits in future activities, pay them out to shareholders, or both. Shareholders are at the mercy of the company in terms of receiving dividend payments. There is no guarantee that any dividends will be paid by the company ever. Publicly-traded businesses must build up a strong dividend history in order to be attractive to long-term shareholders. The longer the dividend history, the more confidence investors feel about the business's commitment to paying dividends. A dividend investor can seek steady cash payments that do not increase or decrease or he can buy stocks that have a history of increasing dividend payments. Both approaches are well-known in finance; the second approach is known as dividend growth investing or DGI. Adopting DGI as a preferred strategy requires the investor to study the dividend histories of his stocks, but with an eye towards which companies have historically increased their dividend payments over time. A regular dividend investor is merely looking for a long track record. DGI has an advantage in that dividends can be reinvested over time to buy more stocks. Increasing dividend payments allows reinvested dividends to grow through compound interest, the holy grail of stock investing. Compounding dividends can increase returns far beyond other strategies since the investor uses cash paid to him by his stocks to buy more of them.


The inventory valuation method that tends to smooth out erratic changes in costs is?

Weighted average method which requires to use the weighted average cost per unit of inventory at the time of each sale.


What is 0.0689 rounded to the nearest tenths?

0.1


What can you do if you suspect an application requires more privileges that the currently logged-on account?

Use the Run as administrator shortcut meun option


Is it illegal to have a car that is uninsured provided you dont drive it?

If the vehicle is currently registered (i.e.: has valid current tags) the state requires that it be insured. If the vehicle is not currently registered, it is not required that it be insured - but NOBODY may operate it.


How did the Sarbanesws-Oxley Act become necessary?

Some companies were not truthfully presenting their financial statements. This intentionally mislead investors and lenders, leading to losses by them. The Act requires company officers to personally swear that the numbers were reported accurately and requires the company to put in place procedures and controls that assure accurate financial reporting.


How can a fortune be done by selling coins?

Money can be made by investors who buy and sell gold coins on a daily basis, the price of gold does not fluctuate too much so knowing when and who to sell to requires knowledge of the markets you are selling to and buying from.


How can you find someone with their last known address in nyc?

You can hire a skiptracing agency to investige what matter it is that requires you contact the person and locate where they currently reside.