The sum of the expected dividend and the expected capital gains yield is called a. Required rate of return b. expected total return c. expected rate of return d. value of the stock e. realized rate of return

Q: What is the dividend payout ratio and the dividend yield ratio?

A: Dividend payout ratio is the ratio between total dividends and the net income of a company. It helps…

Q: In comparison to free cash flow valuation, what's the main issue with dividend valuation?

A: Dividend discount model is a DCF model which assumes that the price of a stock should be equal to…

Q: Use available information to forecast  incremental earnings what are the NWCs and ∆NWCs and forecast…

A: 0 1 2 3 4 5 1 COGS   -11000 -11000 -11000 -11000   2 OPENING STOCK 0 0 0 0…

Q: a. What is its dividend yield? b. What is its capital gains rate? 96 c. What is the total realized…

A: Dividend Yield = Expected Dividend / Current Stock Price Capital Gain Rate = (Expected Stock Price -…

Q: Which of the following decision criteria is the easiest to use and very popular among investors?…

A: The capital budgeting process uses different methods to analyze the projects. Each method has…

Q: Differentiate between the terms expected rate of return, required rate of return, and historical…

A: The expected rate of return is the normal rate of return that the speculation can anticipate. By and…

Q: To estimate the cost of equity we can use the Capital Asset Pricing Model (CAPM) or the Discount…

A: Capital asset pricing model uses the relationship between return of stock return and market return…

Q: In the simple Keynesian model of income determination, investment is O the buying and selling of…

A: in the Keynesian determination of national income there is mainly to methods which include saving…

Q: Describe the annual cash flow analysis, which presents measures of investment worth based on yield?

A: The question is based on the concept of cash flow and its analysis in terms of discounted value of…

Q: A stock's next expected dividend divided by the current stock price is the: O current yield O total…

A: A stock's price is decided by the dividend it pays, the dividend growth rate and the required rate…

Q: The cost of capital method includes: Choose the correct. A. dividend yield method B.…

A:

Q: What is the estimated cost of equity using thedividend growth approach?

A: Introduction: Dividend growth model is an approach which assumes dividends are that at a constant…

Q: Dividend yield formula?

A: Dividend yield is the ratio of the expected dividend to current share price. It is a financial…

Q: What is meant by the dividend yield on a common stock investment?

A: Not all the tools of fundamental analysis work for every investor on every stock.  For dividend…

Q: Explain the fundamental equivalence of valuation based on expected future dividends free cash flows…

A: Introduction: The valuation for dividends, cash flows & earnings generally vary in their own…

Q: Which one of the following represents the capital gains yield as used in the dividend growth model?

A: The formula for the dividend growth model is: P0 = d1/(r-g) where d1 is the next expected dividend r…

Q: Whats is the sum of the expected dividend and the capital gains yield called

A: total yield = capital yield + dividend yield

Q: What is the Cost of Equity? What is the Weighted Average Cost of Capital? WACC

A: Interest on debt = 9% Weight of Debt = 60% Weight of Equity = 40% Risk Free Rate in USA = 6% Risk…

Q: Make a simple example of the following: a. Capital Gain (or Losses) b. Expected Return c. Real…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: What’s is the Return on Average Equity?

A: The return on average equity (ROAE) is a financial metric that helps to evaluate the profitability…

Q: The weights used in calculating the weighted average cost of capital should be based on ________.…

A: Capital structure of the company contains, debt, preferred stock and equity. To get maximum value of…

Q: What is the expected growth rate of the dividend?

A: It is very difficult to calculate the cost of equity capital as compared to debt capital…

Q: Using the value-to-book version of the residual income valuation approach, the value-to-book ratio…

A: Part 1: d. market value of common equity plus the present value of expected future residual income.

Q: Explain how to find the value of a stock given itslast dividend, its expected growth rate, and…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: Explain the difference between expected rate of return, required rate of return, and historical rate…

A: Return Return is also referred to as the money lost or made over a specific period of time. It can…

Q: thod of income approach that consider the factor

A: Introduction: When valuing a property that generates a source of income, the income technique is…

Q: The three factors that determine the value of future dividends are...? size, timing, and risk.…

A: The three factors that determine the value of future dividends are size, timing, and risk.

Q: The two main approaches of equity analysis are: a. The discounted cash flow models and the absolute…

A: Equity analysis is carried out to value a firm. The two main approaches to value equity are given…

Q: What is the expected return on the firms stock

A: Here, Proportion of Debt is 75% Proportion of Equity will be (1-75%) = 25% Cost of Debt is 5% Risk…

Q: "We can estimate cost of equity using Capital Asset Pricing Model (CAPM)" True False

A: THE COST OF EQUITY IS THE RETURN A COMPANY PAYS TO ITS EQUITY INVESTORS .

Q: Book value per share is ____ oriented while market value per share is ____oriented. a. short term;…

A: Book Value Per Share:- It is the ratio of a firm's common equity divided by its number of shares…

Q: To estimate the required rate of return on a stock we can use the Capital Asset Pricing Model (CAPM)…

A: The required rate of return on a stock can be defined as a rate of return which an investor would…

Q: What are three ways to estimate the expected dividend growthrate?

A: Expected Dividend growth rate is the prospective growth expected by investors on the dividend paid…

Q: appropriate to use the dividend valuation model in estimat

A: Introduction : The dividend valuation model, commonly known as the dividend discount model is the…

Q: Forward P/E = Market capitalization/ forecasted income

A: There are two types of P/E ratios 1) Trailing P/E ratio 2) Forward P/E ratio   Trailing P/E ratio…

Q: The present value of an investment's future cash flows divided by its initial cost is the: O Net…

A: The present value of an investment is calculated by applying the time value of money concept to the…

Q: Which of the following may take the form of dividend income and/or capital appreciation?   a. bond…

A: Dividend means amount of income that is generated and distributed to the shareholders. Capital…

Q: What is the investor’s expected after-tax internal rate of return on equity invested (ATIRR)?

A: After-tax return refers to the net return after adjusting the tax payable on it.

Q: which is the return on the risk capital, includes stock price appreciation plus dividends received…

A: which isthe return on the risk capital, includes stock price appreciation plusdividends received…

Q: Liquidity. The net profit / sales percentage measures which of the following? O Return on…

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: How does one calculate the capital gains yield and the dividendyield of a stock?

A: Capital gain yield: The capital gain yield mainly refers to the increase in the security’s price,…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.