Available Options are:
A. Market price.
B. Dividend yield.
C. Capital gains yield.
D. Total return.
E. Real return.
Answer:
C. Capital gains yield.
Explanation:
This can be explained using the Dividend valuation model formula, which is as under:
Po = Dividend * (1+g) / (R-g)
The reason is that the dividend paid out of Northern Culture has higher growth rate than the Dixie South which means that if the growth is higher the increase in the share value is higher. The growth in share value will increase the share price significantly because increase in growth increases the nominator by (1+g) and decreases the denominator by g. This means that the capital gains (Stock sale price - Stock purchase price) will increase significantly and hence the capital gains yield will increase.
As the company Northern has higher dividend growth rate, it will have higher Capital gains yield than the the stock of Dixie.
She is not being proactive and waking up early enough to get on the bus
Answer:
is the return investors require on the firm's stock.
Explanation:
The purpose of WACC is to determine the cost of each part of the company’s capital structure based on the proportion of equity, debt, and preferred stock it has. Each component has a cost to the company. The company pays a fixed rate of interest on its debt and a fixed yield on its preferred stock. Though a firm does not pay a fixed rate of return on common equity, it does often pay dividends in the form of cash to equity holders.
The weighted average cost of capital is an integral part of a DCF valuation model and, thus, it is an important concept to understand for finance professionals, especially for investment banking and corporate development roles.
Answer:
total wealth in Krit Corp is $5000
Explanation:
given data
stock = 200 shares
treading = $25 per share
to find out
total wealth in Krit Corp
solution
we know here investor bought 200 share at $25 per share current treading
so here
total wealth in Krit Corp wuill be = stock × treading ...............1
put here all these value we get in equation 1
total wealth in Krit Corp = stock × treading
total wealth in Krit Corp = 200 × 25
total wealth in Krit Corp = $5000
so total wealth in Krit Corp is $5000
