Can you assist me getting started on these questions. I am having trouble understanding the concepts.
Questions:
1. Krell industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's dividend yield and equity cost of capital?
2. Dorpac Corporation has a dividend yield of 1.5%. Dorpac's equity cost of capital is 8%, and its dividends are expected to grow at a constant rate.
a. What Is the expected growth rate of Dorpac's dividends?
b. What is the expected growth rate of Dorpac's share price?