Stocks

# 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?

232425 ###### 2006-08-06 02:11:12

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.

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## Related Questions  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? 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. 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  transfer payments are about of U.S. domestic output as of 2009  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. 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 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 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 I had this question in my math homework yesterday. LOL. The answer is: 0.78 A 10% dividend not make any difference whatsoever to the number of issued shares. Neither will it effect the book value of its shares. 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.  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?  TEN MILLION! Wow! 180 payments of \$94,932.33 - IF you start payments immediately - at the beginning of the month. 180 payments of \$95,565.21 - IF you start payments waiting 30 days to start at the end of the month. Assuming the face value of the share is Rs. 10/- then initial dividend % is 15% Year 1 - 20% which means Rs. 2/- Year 2 - 25% which means Rs. 2.5/- Year 3 - 30% which means Rs. 3/- Year 4 - 40% which means Rs. 4/- All dividends are per share under the assumption that the face value of the share is Rs. 10/- That depends on how soon you've agreed to pay it off.   Either expression is acceptable, depending on the context.The cost of living went up five percent last year.The stock rose by five percent over its close yesterday. 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?

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