Personal Finance
Investing and Financial Markets
Mathematical Finance
Stocks

What is the expected dividend in each of the next three years if XYZ Company paid a one dollar per share dividend yesterday and expects the dividend to grow steadily at a rate of 4 percent per year?

414243

Top Answer
User Avatar
Wiki User
Answered
2006-02-09 04:30:33
2006-02-09 04:30:33

Year one 1.04, two 1.044, three 1.052

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0

Related Questions


Paying a dividend costs the company and as such will decrease the value of the company and the stock. If all other factors are equal, a buyer would prefer a stock that is expected to pay the higher dividend. If Company A is expected to pay $10 per share annually and Company B $8, an investor who wants to make 8% would be willing to bid $125 for a share of Company A but only $100 for Company B. On the date that a dividend is effective, a company's stock will drop by the amount of the dividend because that amount will be paid to the person who owned the stock at the beginning of that day.

common stock current price $90 is expected to pay a dividend of $10. Company growth rate is 11%. estimate the expected rate of return on corp stock common stock current price $90 is expected to pay a dividend of $10. Company growth rate is 11%. estimate the expected rate of return on corp stock

Proposed Dividend means a dividend that is paid by the company that the end of a finical year.

Dividend history is important especially for stock investing. Without knowing the dividend history for a company, you will never know if the company will be reliable to pay the dividend every quarter.

Dividend is recieved by company shareholder as a profit and according to their shares.

Dividend income received from other company increases the net income of company.

A company proposes a dividend to be paid to shareholders. The shareholders vote on this and the dividend that is actually paid may differ from that proposed.

Please read with caution: Dividend forecasts are just that, we can not be sure what a company will pay as a dividend. For example, in the Related Link below, Aviva is expected to give the highest dividend yield of 8.1%. Aviva also has a very good P/E ratio and Price to book ratio. Still it's better to err on the side of caution as profits are reliant on other aspects of the stock markets doing well.

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.

You can sell shares to qualify for the dividend on or after the ex-date (ex-dividend date), which will be announced the company

A dividend is nothing but a periodic sharing of profit by the company with its share holders. The dividend is usually declared as a % of the face value of the share. A 100% dividend on a share with a face value of 1$ means you would get $1 for every share of that company you hold.

It means that the company would share its profit with its share holders once every 3 months of the year. The Dividend % is decided based on the profits made by the company during the current fiscal quarter. Let us say a company has a face value of Rs. 10/- and decides to declare a dividend of 25% it means that for every share you hold in that company you will get Rs. 2.5/- as dividend.

Proposed dividend is that which is proposed by the management to be paid to share holders of company.Declared dividend is the dividend which is finalized in annual general meeting to be paid to share holders.

First of all, the Dividend, at least in Mathematics, is the Number being DIVIDEND. So, in the equation, 20 / 5 = 4, 5 is the DIVIDEND. Next, if you'd like a sentence you could say, for that equation, "The dividend of the equation, "Twenty divided by five", is five,". On the contrary, if you're talking about business here... A dividend will be a property of money. It'll be what's paid to the shareholders of a company, out of the profits, the company makes. If you want dividend in a sentence, business-wise how about: "The Company shared it's DIVIDEND quarterly amongst it's 4 shareholders. " That should work.

I assume you mean 1% dividend. For the first year, each quarter you will receive one quarter of one percent, or 0.25%. The second year, well, that depends on what you mean. Do you mean an absolute growth of 4%, or 4% of the dividend? If it is the later, you will receive 1.25% per quarter. If it is the former, you will receive 0.26% per quarter. For the third year the same question applies: absolute or relative? For absolute, you will receive 2.25% per quarter. For relative, you will receive 0.27% per quarter. Whichever is the case, multiply the percentage by the stock price to determine what the dividend. You will receive that every quarter for the three years. If you hold it for three years, and then sell, you may get the final dividend. Assuming that the company pays the dividend on the exact business day (or sooner)three years later, you will be holder of record before the ex-dividend date, and you will get the final dividend.

A monetary gain on an investment, much like earning interest on a bank account. Credit Unions typically use "dividend" instead of "interest" in their various accounts."dividend is given from the profit earn by the company to the share holders of the company" simply telling "dividend is the part of the profit"

The stock Dividend is more or less profit sharing. When a dividend paying company is profitable they pass along those profits to the shareholders in the form of a dividend check.

Declaring a dividend is a corporate action taken by the board of directors of a company. Usually this is done once or twice a year when the company's financial results are declared and the company has made handsome profits/revenues. Dividend is usually declared as a % of the face value of a share. A 100% dividend on a Rs. 1/- face value share represents a dividend of Rs. 1/- similarly a 100% dividend on a Rs. 10/- face value share represents a dividend of Rs. 10/- Ex: You hold 1000 shares of XYZ limited with a face value of Rs. 5/- the company has declared a 50% dividend. Then you would receive Rs. 2,500/- as dividend.

Let's say the dividend payable is $110. When the dividend is declared (eg the decision is made to pay a dividend but the dividend and tax won't be paid until, say, the first day of next month) then the entry is: Debit "Dividends Expense" (Expense Account) $110 Credit "Dividend Payable Parent Company" (Liability Account) $100 Credit "Dividend Tax Withheld" (Liability Account) $ 10 When the dividend and Tax is actually paid (eg it is now the first day of next month) the entry is: Debit "Dividend Payable Parent Company" (Liability Account) $100 Debit "Dividend Tax Withheld" (Liability Account) $ 10 Credit "Bank Account" (Asset Account) $110

A share in a company gives you as an investor a share in its dividend.

Cum-dividend (CD) comes before Ex-dividend (XD). A stock is said to be CD indicates that the company is paying out dividend in the near future which serves like a preempt notice to investors. The company would have announced the amount of dividend to be paid out but has yet to. If the shareholder sells a CD stock, he/she is not entitled to the dividend. There has to be a cut off date that the company has to set, so as to confirm the list of shareholders to receive dividend. When the list is finalized, the stock is said to go XD. Once XD status is declared, the shareholder who sells his/her shares will still be entitled the dividends, while the new owner will not.

A payment made by a company to its shareholders is called a dividend.

Dividend policies are concerned with the financial policies that have to do with how, when, and how much regarding paying cash dividend. Dividend policy theories explain the reasoning and arguments that relate to paying dividends by firms Dividend theories include the dividend irrelevance theory that indicates there is no effect on the capital structure of a company or its stock price from dividends.

It's a payment made to the policy owner by the mutual insurance company when there is a profit. The policyholders are the owners of a mutual life insurance company and they share in the profits by receiving dividend payments from the insurance company.

Dividend policy is a set of rules that a company uses to determine how much of its earnings it will pay to shareholders. Stable dividend policy means all payments are equal.


Copyright ยฉ 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.