FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor is considering purchasing shares of a company that is selling for $57.90 per share. The companys dividend payout has historically been 45% and

An investor is considering purchasing shares of a company that is selling for $57.90 per share. The company’s dividend payout has historically been 45% and it has 6 million common shares outstanding. Recent annual after-tax earnings were $18.5 million. If this investor purchases the shares of this company, what will be the dividend yield on this investment?

Step by Step Solution

★★★★★

3.56 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

The dividend payout of the company is 45 which means ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications

Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs

11th edition

134141083, 978-0134141084

More Books

Students also viewed these Finance questions

Question

★★★★★
A $10 million, 5-year loan bears an interest rate of 7 percent. The loan repayment plan calls for five annual end-of-year payments. Each payment is to include an equal amount of principal repayment...

Answered: 1 week ago

Question

★★★★★
A borrower takes out a $400,000 30-year fully amortizing 1-year LIBOR based ARM loan with a 2.5% margin and monthly payments. The loan has a teaser rate of 1% for the first year, after which the rate...

Answered: 1 week ago

Question

★★★★★
A borrower takes out a loan with an annual interest rate of 8% and a loan term of 5 years. If the loan amount is $25,000, what will be the monthly payment for this loan?

Answered: 1 week ago

Question

★★★★★
Classify these equations according to their order, degree, type and linearity. Order Degree IV DV Linearity

Answered: 1 week ago

Question

★★★★★
At what periodic interest rate is a $2,000 cash receipt occurring at the beginning of year 1 equivalent to four annual $600 cash disbursements? The first cash disbursement occurs at the end of year...

Answered: 1 week ago

Question

★★★★★
Write the charge and mass balances for dissolving CaF 2 in water if the reactions are CaF,(8) = Ca2+ + 2F Ca?+ + H,O = CAOH+ + H* Ca2+ + F = CaF+ CaF2(s) = CaF2(aq) F + H* = HF(aq) HF(aq) + F = HF,

Answered: 1 week ago

Question

★★★★★
your ultimate goal upon graduation (i.e., career goals).

Answered: 1 week ago

Question

★★★★★
1. What function or functions does Mei Lis attitude toward the advertisements that line the street where she lives play? 2. Using the psychoanalytic approach to motivation, how does Mei Li deal with...

Answered: 1 week ago

Question

★★★★★
A company just issued a ten - year, $ 5 , 0 0 0 bond with a coupon rate of j 2 = 8 . 4 4 % . What price would an investor be willing to pay for the bond if they wanted a return on their investment of...

Answered: 1 week ago

Question

★★★★★
Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, the company believes it should have given its No. 3 peaches to charity and saved its...

Answered: 1 week ago

Question

★★★★★
DIY Inc. has EBIT of $56,119 and market value debt of $119,992 outstanding with 0.14 coupon rate. The cost of equity for an all equity firm would be 0.13. DIY has a corporate tax rate of 0.34....

Answered: 1 week ago

Question

★★★★★
What is the purpose of a retaining wall, and how is it designed?

Answered: 1 week ago

Question

★★★★★
How do you determine the load-bearing capacity of a soil?

Answered: 1 week ago

Question

★★★★★
what is Edward Lemieux effect / Anomeric effect ?

Answered: 1 week ago

Question

★★★★★
Define Management by exception

Answered: 1 week ago

Question

★★★★★
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual...

Answered: 1 week ago

Question

★★★★★
Which of the following gives the range of y = 4 - 2 -x ? (A) (- , ) (B) (- , 4) (C) [- 4, ) (D) (- , 4] (E) All reals

Answered: 1 week ago

Question

★★★★★
You borrowed $3500.00 at 10.4% p.a. compounded monthly, and repaid $1000.00 after two years and $750.00 after four years. How much do you owe at the end of five years?

Answered: 1 week ago

Question

★★★★★
A store advertises a discount of $44.75 on a pair of running shoes. If the discount is 25%, what price were the running shoes sold for?

Answered: 1 week ago

Question

★★★★★
Sai paid income taxes of $6705.15 plus 22% of the amount by which his taxable income exceeded $44 701. If his tax bill was $7162.53, calculate Sai's taxable income.

Answered: 1 week ago

Question

★★★★★
Bradburn plc was formed 5 years ago through a public subscription of ordinary shares. Daniel Brown, who owns 15% of the ordinary shares, was one of the organizers of Bradburn and is its current...

Answered: 1 week ago

Question

★★★★★
Morlan SA is preparing its December 31, 2019, financial statements. Two events that occurred between December 31, 2019, and March 10, 2020, when the statements were authorized for issue, are...

Answered: 1 week ago

Question

★★★★★
Robbins Company is a wholesale distributor of professional equipment and supplies. The company's sales have averaged about $900,000 annually for the 3-year period 2017-2019. The firm's total assets...

Answered: 1 week ago

Previous Question Next Question