Answer:
Please sew solution below
Explanation:
a. What are the dividend payout ratios for each firm
Dividend payout ratio = Dividend / EPS
• Payout ratio stock A = $1.30 / $2.6 = 0.5= 50%
• Payout ratio stock B = $1.3 / $1.8 = 0.72222 = 72.22%
b. What are the expected dividend growth rates for each stock.
Growth rate = ROE × (1 - dividend payout ratio)
•Growth rate stock A = 0.08 × (1 - 50%) = 0.04 = 4%
• Growth rate stock B = 0.05 × (1 - 72.22%) = 0.01389 = 1.39%
c. What is the proper stock price for each firm
• Stock A
Price = D1 / (Re - g)
D1= $1.30 * (1 + 0.04)
= 1.352
Stock B
Price = D1 / (Re - g)
D1= $1.30 * (1 + 0.013)
= 1.3169
Therefore,
• Stock A's proper price = $1.352 / (0.08 - 0.04) = $33.8
• Stock B's proper price = $1.3169 / ($0.08 - $0.013) = $19.66
Overdrafts are given by banks only to trustworthy clients. if the bank balance is maintained clearly. To avoid overdrafts there should always be a sufficient amount of balance and avoid using cheques on situations as such.avoid ATM cards as well
In building a new mall,
The input would be : Labor, All materials needed in building a mall
Conversion : Building process
Output : The actual mall itself
hope this helps
Answer:
Return from dividend yield= 2.0%
Capital gain = 16.4%
Explanation:
The return on a stock is the sum of the capital gains(loss) plus the dividends earned.
<em>Capital gain is the difference between the value of the stocks when sold and the cost of the shares when purchased.
</em>
Total shareholders Return =
(Capital gain/ loss + dividend )/purchase price × 100
The total return can be broken down into
<em>Dividend yield = Dividend/price × 100</em>
= 1.03/51.41 × 100
=2.0%
<em>Capital gain = capital gain/ price × 100</em>
= (59.82 - 51.41)/51.41 × 100 = 16.4%
