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 stock? a. $3.00 b. $3.81 c. $4.29 d. $4.75 e. $6.13 ANS: A = $4.40 = D0 (1.10) D0 = $3.00. DIF: Easy OBJ: TYPE: Problem TOP: Constant growth stock 2. The last dividend paid by Klein Company was $1.00. Klein’s growth rate is expected to be a constant 5 percent for 2 years‚ after which dividends are expected to grow at a rate of 10 percent forever. Klein’s required rate of
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features‚ quotations‚ ratings‚ popular types‚ and international issues of corporate bonds. LG5 LG6 G O A L S Apply the basic valuation model to bonds and describe the impact of required return and time to maturity on bond values. Explain yield to maturity (YTM)‚ its calculation‚ and the procedure used to value bonds that pay interest semiannually. Understand the key inputs and basic model used in the valuation process. Across the Disciplines WHY THIS CHAPTER MATTERS TO YO U Accounting:
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Tutorial 1 1. Ice breaking session 2. General overview of financial markets and institutions module 3. Group project briefing 4. Mid semester and final examination 5. Other relevant matters Tutorial 2 : Financial Intermediation 1. Why is financial intermediation important in the economy? Because they channel funds from those who do not have a productive use for them (surplus sector) to those who do (deficit sector)‚ thereby resulting in higher economic efficiency
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firm’s performance. 8. Jack Robbins is saving for a new car. He needs to have $ 21‚000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.) $16‚670 9. Ferris‚ Inc.‚ has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments‚ starting at the end of the year are as follows—$450‚000‚ $560‚000‚ $750‚000‚ $875‚000‚
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that influence the cost of money. Discuss how market interest rates are affected by borrowers’ need for capital‚ expected inflation‚ different securities’ risks‚ and securities’ liquidity. Explain what the yield curve is‚ what determines its shape‚ and how you can use the yield curve to help forecast future interest rates. Chapter 6: Interest Rates Learning Objectives 117 © 2012 Cengage Learning. All Rights Reserved. May not be copied‚ scanned‚ or duplicated‚ in whole or in part
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Title______________________________________________________________________ Influence of Rhizobium on the growth and yield of Rice Abstract___________________________________________________________________ Rice (Oryza sativa L.) is one of the world’s most important crops. The present investigation was designed to assess the range of growth-promoting activities of various diazotrophic bacteria on rice seedling vigor‚ its carryover effect on straw and grain yield‚ and the persistence of an inoculant strain on rice roots under greenhouse
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ship (Marc‚ 1989‚ p.38). According to the Cruise Line International Association (CLIA‚ 2005)‚ more than 100 million North Americans took cruise between 1980 and 2004. Besides‚ the average annual passenger growth rate of cruise line industry is 8.2 percent due the cruise industry report (Mazzarella& Ji‚ 2007‚ p.20)‚ which indicates that cruise industry becomes one of the fastest growing sectors in the leisure travel market. Additionally‚ the cruise industry has grown as new markets that are developed
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Chapter 11 Mini Case‚ Q1-4 ONLY‚ pgs. 353-354 1. Compute the yield to maturity and the after-tax cost of debt for the two bond issues. Bond 1 | | Maturity | 12 | Coupone | 3‚5% | Par | 1000 | Flotation | 0 | PV | 1031 | Before tax | 3‚19% | After tax cost of Bond | 2‚10% | Bond 2 | | Maturity | 32 | Coupone | 4‚0% | Par | 1000 | Flotation | 0 | PV | 1035 | Before tax | 3‚8% | After tax cost of Bond | 2‚5% | 2. Compute BioCom’s cost of preferred stock
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Mid-Term Examination‚ Winter 2010 Level: Masters Full Marks: 100 Program: MBAe Section B Pass Marks: 60 Course: Financial Management Time: 3 Hrs. Term: III Candidates are required to be original and fair in the presentation of their answers. The figures in the parenthesis indicate the marks for respective question. Attempt all the questions Section A Attempt all questions Each question carries 6 marks [5 x 6 =30] 1. You have to pay $12‚000 a year in school
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price. Consider first the data presented below the graph. Each row shows an alternative payout policy: (1) Retain all earnings and pay out nothing‚ which is the present policy; (2) pay out 50 percent of earnings; and (3) pay out 100 percent of earnings. In the example‚ we assume that the company will have a 15 percent ROE regardless of which payout policy it follows‚ so with a book value per share of $30‚ EPS will be $4.50 under all payout policies.1 Given an EPS of $4.50‚ dividends per 0.15($30) share
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