The rate of return on the stock is dependent on the public's appraisal of the current economic situation and of the company. However, on the long term it is dependent on the management's efforts.
A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is rs 11%, and the expected constant growth rate is 5%. What is the current stock price?
this is simple Q here is the formula : P0= D1/(K-G) P0= 40 K= 10% G=7% D1= ?? D1= 1.2 Cheers ;)
There is no set amount of time required per dividend payment. However, the majority of the time it is paid on a quarterly basis (4 times per year). It is also somewhat common to see a company pay out a one-time, annual dividend, or for a company to pay a monthly dividend.
expected rate of return
To answer this question, the appropriate formula is the discounted dividend model without growth which is presented as follows: P = DIV / r where P = price of the stock DIV = the amount of the annual dividend r = the required rate of return Using the above formula: V = $6.50 / 6.5% = $6.50 / 0.065 = $100 The price of the stock would be approximately $100 using the discounted dividend model.
A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is rs 11%, and the expected constant growth rate is 5%. What is the current stock price?
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
Hahn Manufacturing is expected to pay a dividend of $1.00 per share at the end of the year (D1  $1.00). The stock sells for $40 per share, and its required rate of return is 11%. The dividend is expected to grow at a constant rate, g, forever. What is Hahn\'s expected growth rate? a. 8.00% b. 9.00% c. 8.50% d. 10.00% e. 9.50% You can also get answer on onlinesolutionproviders com thanks
this is simple Q here is the formula : P0= D1/(K-G) P0= 40 K= 10% G=7% D1= ?? D1= 1.2 Cheers ;)
j
Yes following entry required: [Debit] Proposed dividend [Credit] dividend payable
11.04 12.40 13.76 15.00 9.42
no
The word "expected" is not the same as "required". Something that is "expected" is something that is assumed will occur. Something that is "required" is something that is essential.
What constitutes a constant growth stock is a stock that has dividends that are expected to grow at a constant rate. The formula used to value a constant growth stock is determined by the estimated dividends that will be paid divided by the difference between the required rate of return and growth rate.
If dividend received is reinvested then there is no journal entry is required and this information can be mentioned through the use of memo entry.There is no journal entry required for dividend received reinvested as nothing is received by person or company so memo entry is enough for information purpose.
not working as per required, or expected to work not working as per required, or expected to work