Dividend yield method the cost of equality is ascertained as a percentage of

Related MCQs

• In the case of existing shares cost of equity is computed under dividend yield method by dividing dividend per share with
• .Earnings yield method is applied when the dividend pay out ratio is
• Equity shares of phonex Ltd are quoted in the market at Rs17. The dividend expected a year hence is Rs1.50. The expected rate of dividend growth is 8%. The cost of equity capital to the company is
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• The dividend on equity shares is only paid when dividend on ---------- has already been paid
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• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .
• A project costs Rs50,000 and will yield annual cash inflows of Rs20,000 for 5years. Calculate its payback period.
• A project requires an investment of Rs500000and has scrape value of Rs.20000 after five years. It is expected to yield profits after depreciation and taxes during the five years amounting to Rs.40000,Rs60000, Rs.50000,Rs70000 and Rs20000.What is the average rate of return on the investment?