menu
Sign up

The Current Dividend Yield, Which Is the Recent Dividend Divided

Question 78
Multiple Choice

The current dividend yield, which is the recent dividend divided by the current stock price, on common stock of Formosan Freedom Co. is 4.8 %. The company just paid a $2.10 dividend. The dividend will be $2.205 in next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on stock of Formosan Freedom Co.? A) 10.04 percent B) 16.07 percent C) 21.88 percent D) 43.75 percent

Related questions
Q 79
Suppose MBI Co. recently paid $2 annual dividend. The company is projecting that its dividends will grow by 20 percent next year, 12 percent annually for the two years after that, and then at 6 percent annually. Based on this information, how much should the company's common stock sell for today if the required return is 10.5%? A) $50.90 B) $59.22 C) $66.60 D) $77.50
Q 80
Suppose Zina & Co. has an expected dividend next year of $5.6 per share, a growth rate of dividends of 10 percent, and a required return of 20%. The value of a share of common stock is. A) $22.40 B) $28.00 C) $18.67 D) $56.00 ESSAY QUESTIONS
Q 81
Explain what shelf registration is and how it can help companies to reduce their costs.
logo
© 2020-2021 Cozyplus FZ LLC. All rights reserved