I have just set up a margin loaninterest rate = 7.5%some company...

I have just set up a margin loan

interest rate = 7.5%

some company divis are above the interest on the loan

eg LEI 7.8%

trouble is the divi yield is based on past earnings

Interim 60.00 100 16 Mar, 09 31 Mar, 09
Final 85.00 100 21 Aug, 08 30 Sep, 08

total $1.45

forecast 2010 $1.46
divi yield = 8%


perhaps we should be using '95 figures


divi '10 = 12 c
price = $18.35
divi yield = less than 1%