Ask Question
12 July, 16:25

Krell Industries has a share price of $ 21.05 today. If Krell is expected to pay a dividend of $ 0.89 this year and its stock price is expected to grow to $ 24.36 at the end of the year, what is Krell's dividend yield and equity cost of capital?

+2
Answers (1)
  1. 12 July, 18:16
    0
    Krell's dividend yield and equity cost of capital are 4.23% and 19.95%

    Explanation:

    Dividend yield = expected dividend/price today

    = $ 0.89/$ 21.05

    = 4.23%

    Equity cost of capital = (Ending share price - Initial price + Dividend per share) / Initial price * 100

    = [ ($24.36 - $21.05 + 0.89) / $21.05]*100

    = 19.95%

    Therefore, Krell's dividend yield and equity cost of capital are 4.23% and 19.95%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Krell Industries has a share price of $ 21.05 today. If Krell is expected to pay a dividend of $ 0.89 this year and its stock price is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers