answersLogoWhite

0


Best Answer

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.

User Avatar

Wiki User

โˆ™ 2006-08-06 02:11:12
This answer is:
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
User Avatar
Study guides
๐Ÿ““
See all Study Guides
โœ๏ธ
Create a Study Guide

Add your answer:

Earn +20 pts
Q: What payments will you receive if you buy the stock and plan to hold it for three years at 1 per share dividend yesterday and expect the dividend to grow steadily at a rate of 4 percent per year?
Write your answer...
Submit
Related questions

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?

Year one 1.04, two 1.044, three 1.052


Does the 70 percent dividend exclusion include preferred stock?

70 percent dividend income exclusion on the tax returns of corporations. That is, if a corporation owns preferred stock, it can exclude 70 percent of dividend income and pay income taxes on only 30 percent of dividend income, both preferred and common stock.


A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?

A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?


What is dividend tield?

The dividend yield is the ratio of the annual dividend amount to the current price of the stock. So if the dividend is $1 and the current price is $50, the yield is 2 percent ($1/$50). But when the stock changes price the current dividend changes accordingly.


How many percent dividend is pay reliance power?

20 %


What is the expected dividend if the you pay 1.00 an the dividend earns 4 percent for 3 years.?

Data: current dividend= 1 Growth = 4% time period= 3 years solution dividend for first year= 1*(1+0.04) Expected Dividend for first year= 1.04 dividend for second year= 1.04(1+0.04) Expected dividend for the second year =1.082 dividend for third year= 1.082(1+0.04) Expected Dividend for Third Year = 1.124


Invested 53200 cash in the common stock of XYZ a 4 percent interest. Received the quarterly dividend of 1450 from the investment in XYZ. Journalize dividend transaction?

[Debit] Cash 1450 [Credit] dividend income 1450


Transfer payments are what percent of US domestic output?

transfer payments are about of U.S. domestic output as of 2009


The what percent is found by dividing the annual per share dividend by the closing price per share?

Yield


Hart Enterprises recently paid a dividend It expects to have a nonconstant growth of 20 percent for 2 years followed by a constant rate of 5 percent thereafter The firms required return is 10 percent?

no


Is a 2 percent surcharge on credit card payments legal?

yes


What is the dividend received deduction?

If a company receives dividends from another company it is entitled to a deduction of 70 percent of the dividends that it receives. However, if the receiving company owns 20 percent or more then the deduction is 80 percent.


An ordinary share has a current price of 82.50 and is expected to grow at a constant rate of 10 percent If you require a 14 percent rate of return what is the current dividend on this share?

4%


An issue of common stock has just paid a dividend of 3.75 its growth rate is 8 percent what is its price if the market return is 16 percent?

$50.63


What are the monthly payments on 2000000.00 for 1 year at 4 percent .?

$170,299.81/month.


What is sales proceed in shares and dividend?

Sales proceeds of shares is about CD 40000 and dividend of last 2 years is about CD 4000. Long term capital gains and dividends on shares carry zero percent tax in India


What is the current dividend on this stock on share of Commons stock has a current price of 82.50 and is expected to grow at a constant rate of 10 percent If you require a 14 percent rate of return?

$3.00


What is 78 and one half percent as a decimal?

I had this question in my math homework yesterday. LOL. The answer is: 0.78


The price of a technology stock was 9.58 yesterday Today the price fell to 9.51 Find the percentage decrease Round your answer to the nearest tenth of a percent?

The price of a technology stock was yesterday. Today, the price fell to . Find the percentage decrease. Round your answer to the nearest tenth of a percent.


Will a 10 percent stock dividend increase the number of shares outstanding and decrease the book value per share?

A 10% dividend not make any difference whatsoever to the number of issued shares. Neither will it effect the book value of its shares.


Ryder Supplies has its stock currently selling at 63.25 The company is expected to grow at a constant rate of 7 percent If the appropriate discount rate is 17 percent what is the expected dividend?

tomato 6.33


A stock is expected to pay a dividend of 1 at the end of the year The required rate of return is rs 11 percent and the expected constant growth rate is 5 percent?

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?


What is the accounting double entry when a company declare or pay dividend to its holding overseas company with 10 percent local withholding tax rate?

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 company expects to grow its dividend by 2 percent each year forever The expected dividend in year 1 is 1.00 Investors require a 6 percent rate of return on this stock What is the new stock price?

Stock price = div/K-gStock price = 1/6%-2%Stock price = 25Div = DividendK = rate of returng = growth rate


Warr Corporation just paid a dividend of 1.50 a share that is Do 1.50 the dividend is expected to grow 7 percent a year for the next 3 years and then a 5 percent a year thereafter?

The dividend will be 1.50(1.07)=1.605 for Year 1 1.605(1.07)=1.717 for Year 2 1.717(1.07)=1.838 for Year 3 1.838(1.05)=1.929 for Year 4 1.929(1.05)=2.026 for Year 5

People also asked

What is the average weight of a female sheep?

View results

What is forward head posture?

View results

Will codeine help you get rid of a headache?

View results

What is the Circumference of the earth at 50 degrees north?

View results

Where is Pikachu on Pokemon Gold?

View results