1. The market value of the stocks of Shine Corporation at the beginning of year 1 is P120 per share; at the beginning of year 2 is P130. It declares dividends of P20 per share. a) What is the holding period return from the said investment? b) Assume no dividend is declared. What is the holding period return? c) What is the current yield? d) What is the appreciated return of the investment?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 10P
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COMPUTE THE FOLLOWING: SHOW YOUR SOLUTION.
1. The market value of the stocks of Shine Corporation
at the beginning of year 1 is P120 per share; at the
beginning of year 2 is P130. It declares dividends of
P20 per share.
a) What is the holding period return from the said
investment?
b) Assume no dividend is declared. What is the
holding period return?
c) What is the current yield?
d) What is the appreciated return of the investment?
Transcribed Image Text:COMPUTE THE FOLLOWING: SHOW YOUR SOLUTION. 1. The market value of the stocks of Shine Corporation at the beginning of year 1 is P120 per share; at the beginning of year 2 is P130. It declares dividends of P20 per share. a) What is the holding period return from the said investment? b) Assume no dividend is declared. What is the holding period return? c) What is the current yield? d) What is the appreciated return of the investment?
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