Finance

This morning you purchased a stock that will pay an annual dividend of 1.90 per share next year. You require a 12 percent rate of return and annual dividend increases as 3.5 percent annually. What will be your capital gain be on this stock if you sell it 3 years from now?

  1. 👍 0
  2. 👎 0
  3. 👁 307
  1. 2.91

    1. 👍 0
    2. 👎 0
  2. 2.43

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math

    Gwen owns 357 shares of common stock in a software company. The software company recently paid a cash dividend of $3.75 per share. If the current price of the stock is $14.75, what is the dividend yield of the stock? 25.42% 2.54%

  2. Math

    Part 1. A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. What is the total rate of return on the stock? What are the dividend yield and capital gains yield?

  3. managerial finance

    Early in 2007, Inez Marcus, the chief financial officer for Suarez Manufacturing, ws given the task of assessing the impact of a proposed risky investment on the firm's stock value. To perform the necessary analysis, Inez gathered

  4. Finance

    Bread, Inc., has an odd dividend policy. The company has just paid a dividend of $6 per share and has announced that it will increase the dividend by $4 per share for each of the next five years, and then never pay another

  1. Finance

    Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a $14 per share dividend

  2. investments

    In 2004, Montpellier inc.issued a $100 par value preferred stock that pays a 9% annual dividend. Due to changes in the overall economy and in the company's financial condition investors ar now requiring a 10% return. What price

  3. Consumer Math- HELP

    1. Fred salmon purchased six 1,000 bonds at 92. The bonds pay 6.5% What was the cost of the bonds? What was the total annual interest? What is the yield (to the nearest percent)? 2. John Tucker is interested in purchasing stock.

  4. Finance Math

    Maytag Company earns $4.80 per share. Today the stock is trading at $59.25. The company pays an annual dividend of $1.40. Calculate (a) the price-earnings ratio (round to the nearest whole number) and (b) the yield on the stock

  1. Algebra 2

    Tracey is contemplating the purchase of 100 shares of a stock selling for 15 per share. The stock pays no dividends. Her broker says that the stock will be worth 20 per share in 2 years. What is the annual rate of return on this

  2. corporate finance

    National Health Corporation (NHC) has a cumulative preferred stock issue outstanding, which has a stated annual dividend of $9 per share. The company has been losing money and has not paid preferred dividends for the last five

  3. FInance

    Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current dividend once a year and then pays

  4. business finance

    Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $11.25 per share and has announced that it will increase the dividend by $9.25 per share for each of the next four years, and then never pay

You can view more similar questions or ask a new question.