Hahn Manufacturing is expected to pay a dividend of $1.00 per share at the end of the year (D1 $1.00). The stock sells for $40 per share, and its required rate of return is 11%. The dividend is expected to grow at a constant rate, g, forever. What is Hahn\'s expected growth rate?
a. 8.00%
b. 9.00%
c. 8.50%
d. 10.00%
e. 9.50%
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Year one 1.04, two 1.044, three 1.052
no ,securities premium not used as a dividend
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/-
Dividend Yield on a share is usually the % of the investment amount that is received as dividend every year per share. Each share is worth Rs. 30 and the dividend declared is Rs. 1.50 per share. Hence dividend yield = (1.5/30) * 100 = 5%
It is when you keep your dividends relative to your Earnings per share. Not too high dividends and not too low.
this is simple Q here is the formula : P0= D1/(K-G) P0= 40 K= 10% G=7% D1= ?? D1= 1.2 Cheers ;)
No. The price per share should already reflect the present value of all future dividends. So when the person sells his or her share, they collect their portions of the future cashflows.
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.
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4%
8.5/40=21.25%
You will get 155.55 dividend from (1.35) per dividend for one share of SPY (210).
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.
increase value of share
Year one 1.04, two 1.044, three 1.052
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.
If a corporation has outstanding 1000 share of 8 preferred share and 100 for 3 years, the preferred dividend before dividend declaration is 50.