Jarter Company is estimating the value of its securities and was able to gather the following information: 

- Current year dividends amounted to Php6.00 per share 

- Net income of the company during the year amounted to Php750,000 

- Total outstanding shares of the company is at 100,000 shares 

- Net assets of the company as of the end of the year is at Php2,500,000 

- Jarter's current shares trade at Php80.00 per share 

 

Required:

1. What is the dividend yield of Jarter?

2. What is the growth rate of Jarter?

3. What is the expected dividend of Jarter next year?

4. What is the expected rate of return of Jarter?

Answer rating: 100% (QA)

1 The dividend yield of Jarter is calculated by dividing the annual dividend per share by the current stock price per share and multiplying by 100 to ... View the full answer