Question

1. (a) US Ltd paid a dividend of $21 per share. During the end
of the year, the share price

of US Ltd was $125.56. **Calculate the Dividend
Yield.**

(b) John has just received a fully-franked dividend of $200 and he
is currently at the

15% personal income tax bracket. The current company tax rate is
20%. **Find his
after-tax dividend income.**

Answer #1

1)Dividend yield = Dividend /current share price

= 21 / 125.56

= 16.73%

2)After tax dividend income = Dividend income (1-personal tax rate)

= 200 (1-.15).

= 200*.85

= $ 170

XYZ declared a $1 per share dividend on August 15. The date of
record for the dividend was September 1 (the stock began selling
ex-dividend on September 2). The dividend was paid on
September 10. Ellis is a cash-method taxpayer. Determine if he must
include the dividends in gross income under the following
independent circumstances.
Problem 5-41 Part-b (Static)
b. Ellis bought 100 shares of XYZ stock on
August 1 for $21 per share. Ellis sold his XYZ shares on...

INV Design Ltd. just paid a dividend of $4 and its current
earnings per share is $6. The current T-bill rate is 3.5 percent
and INV's risk premium is 10 percent. The net profit margin, asset
turnover, and debt-to-equity (D/E) ratios are 15 percent, 1.25, and
0.6, respectively. Calculate the current share price by using the
P/E ratio approach.

a. ABC Company has just paid a dividend of $1.00 per share.
Dividends are paid annually. Analysts estimate that dividends per
share will grow at a rate of 20% for the next 2 years, at 15% for
the subsequent 3 years, and at 3% thereafter. If the shareholders’
required rate of return is 12% per year, then what is the price of
the stock today? What will be the ex-dividend price at the end of
the first year? What will...

D Co. has just paid a dividend of 2.50 Baht per share on its
stock. The dividends are expected to grow at a constant rate of 5
percent forever. The stock currently sells for 20 Baht per share.
What are the dividend yield and the expected capital gains
yield?

August Ltd has equity capital amounting to N$350 million
comprising ordinary share capital N$70million and retained earnings
of N$280 million. The par value of a fully paid up share is N$10.
August Ltd has a profit after tax for the year just ended of N$87.5
million. The current market price of the share is N$110 and the
dividend ratio is 60%. Debt amounts to N$420 million. (iv) Dividend
yield (v) Debt to equity ratio, and (vi) Dividend yield

Wayne’s Nurseries Ltd. has just paid a dividend of $0.60 per
share on its ordinary shares. The company has been in business for
five years, and expects that the dividend will grow at 10% for the
next two years, after which it is expected to grow at 4%
indefinitely. You consider that the required rate of return for
shares in this company is 15% per annum. The value of one share in
Wayne’s Nurseries Ltd is approximately:
a) $8.22
b)...

Bronze Company Ltd last paid a dividend of $0.20 per share. This
dividend is expected to grow at 15% per annum for three years, then
at 10% per annum for the next three years, after which it is
expected to grow at a 5% rate forever.
REQUIRED:
(i) Calculate the price you would pay for the share if your
required rate of return is 10%?
(ii) Calculate the price you would pay for the share if you
expected to hold...

The Birdstrom Co. just recently paid a dividend of $2.00 per
share. Stock market analysts expect that the growth rate for the
dividend will be 40% in year 1, 30% in year 2, 20% in year 3, 15%
in year 4, and 10% in year five. After the fifth year, the dividend
will grow at a constant rate of 6%. If the required return for
Birdstrom is 12%, calculate the current stock price and the
expected dividend yield and capital...

A firm just paid a $10 per share dividend, and the stock
currently sells for $100 per share. Dividends are expected to grow
at a 10% annual rate for the next five years. What price must you
be able to sell the stock for at the end of the 5 years in order
for the stock to be fairly valued based on a 15% cost of
equity?

In Australia， during the current income year Ricky who is a
resident taxpayer, has the following:
• a gross salary of $78,000 (PAYG tax withheld $16,500),
• a fully franked dividend of $2,000,
• an unfranked dividend of $2,000, and
• a 50% franked dividend of $700.
• no deductions.
• Calculate his taxable income and tax payable
- Calculation of Rafael’s taxable income by applying the
statutory formula under s 4-15
ITAA 1997
- Calculation of Rafael’s tax liability...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 10 minutes ago

asked 12 minutes ago

asked 18 minutes ago

asked 18 minutes ago

asked 37 minutes ago

asked 39 minutes ago

asked 43 minutes ago

asked 44 minutes ago

asked 46 minutes ago

asked 50 minutes ago

asked 55 minutes ago