Calculating Returns: Suppose a stock had an initial price of $76 per share, paid a dividend of $1.95 per share during the year, and had an ending share price of $68. Compute the percentage total return. What was the dividend yield? The capital gains yield?
Q: What are the dividend yield, capital gains yield, and total percentage return?
A: The dividend yield is the return on security generated through the distribution of dividends. It is…
Q: (Common stock valuation) Assume the following: • the investor's required rate of return is 15…
A: Given, Growth rate = Retention ratio * Return on equity Retention ratio = 40% or 0.40 Return on…
Q: If the annual dividend per share for a company is $0.27 and the closing price $29.88, then the Stock…
A: The annual dividend per share is $0.27. The stock price is $29.88.
Q: 1. The market value of the stocks of Shine Corporation at the beginning of year 1 is P120 per share;…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Capital gains yield is computed by dividing next year's annual dividend by the current stock price.…
A: A stock's yield is divided in two parts. One is the dividend yield and the other is the capital…
Q: You purchased a stock at a price of $46.06. The stock paid a dividend of $1.47 per share and the…
A: Purchase price (P0) = $ 46.06 Dividend (D1)= $ 1.47 Price at year end (P1) = $ 50.56
Q: Suppose a stock had an initial price of $109 per share, paid a dividend of $2.70 per share during…
A: a. Percentage total return = [(Ending share price - Initial price) + Dividend] / Initial price…
Q: Calculate the range of returns that an investor would have expected to achieve 95 percent of the…
A: Given arithmetic means are normally distributed. We need to calculate the range of returns that an…
Q: A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this…
A: Here, D0=$1 growth rate "g" = 5.4% required rate of return "r" = 11.4%
Q: If the annual dividend per share for a company is $0.26 and the closing price $29.83, then the Stock…
A: The dividend per share is $0.26. The price of the stock is $29.83.
Q: (Common stock valuation) Assume the following: • the investor's required rate of return is 16…
A: Growth rate = retention ratio * ROE
Q: If current price of stock is $25 and you hold it for one year and received dividend of $2.5. You…
A: The dividend yield shows how much a company pays out in dividends each year with respect to the…
Q: Suppose a stock had an initial price of $91 per share, paid a dividend of $1.80 per share during the…
A: Initial price (P0) = $91 Dividend (D) = $1.80 Ending price (P1) = $108
Q: 1. Calculating Returns Suppose a stock had an initial price of $87 per share, paid a dividend of…
A: percentage total return=(End value-Beginning value+Dividend)/Beginning value
Q: A stock currently is being sold for $95, with a dividend yield of 6.2% and a dividend growth rate of…
A: SOLUTION : GIVEN, Dividend yield = 6.2% Growth rate = 4.2% Share price = $95 Now, Firstly we have…
Q: If current price of stock is $25 and you hold it for one year and received dividend of $2.5.You sold…
A: Current price of stock=$25 Dividend=$2.5 Selling price of stock=$27 Dividend yield=Dividend…
Q: A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.43 — 2…
A: The rate of return that an investor is expected to earn from the investment is term as the expected…
Q: Suppose you bought 1,050 shares of stock at an initial price of $55 per share. The stock paid a…
A: Return on investments in stock which giving dividend will be dividend received and capital gain or…
Q: What is the annual rate of return for this stock - 1/1 beginning price $35, 12/31 ending price $40,…
A: Begining price on 1/1 is $35 Eniding price on 12/31 is $40 Quaterly Dividend is of $0.5 To Find:…
Q: what is the simple interest rate on the investment in this stock?
A: Total interest = (78 -30) +3.53 = 48+3.53 = 51.53 If this return is divided by the initial stock…
Q: The table below shows your stock positions at the beginning of the year, the dividends that each…
A: Calculation of Dollar Return and Percentage Return of Portfolio:The dollar return $5,435.50 and…
Q: Suppose you know that a company's stock currently sells for $51.48 per share and the required return…
A: Introduction: Current Stock price 51.48 Required return = 6.13% Capital gain and dividend yield are…
Q: What was the estimated annual required return for Excellence Inc.'s stock?
A: The required return on stock can be calculated using the following equation:- P = D2010(1+g)/r-g…
Q: a stock had an initial price of ¢5000,paid a dividend of gh¢1000 per share at the end of the year…
A: Given Initial Price = 5000 Dividend = 1000 ending price = 3500
Q: Calculate the missing information for the following stock. Show your work.
A: Information Provided: Annual dividend = $0.39 Current price per share = $26.50 Price-Earnings ratio…
Q: share has a market value of 96cents, and the last dividend was 12cents. If the expected annual…
A: Using the Dividend Discount model,
Q: If the annual dividend per share for a company is $0.79 and the closing price $26.42, then the Stock…
A: Annual Dividend = 0.79 Closing Price = 26.42
Q: The risk premium on Foster stock is ___%
A: SOLUTION:- Let us first calculate the required return on equity using the Gordon Constant Growth…
Q: a company has a return on equity of 32% and plowback ratio 50% is the earnings of the coming year…
A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…
Q: What is its dividend yield?
A: Ans 7.50%
Q: Given the following information for the stock of CPA Corporation, calculate its beta Current price…
A: We know that Required return /cost of equity = [Expected dividend in next year/current Market…
Q: Optimus stock price started the year at $32.00 and ended the year at $38.00. It paid a dividend of…
A: To calculate the rate of return we will use the below formula Rate of return = [(P1-P0)+D1]/P0…
Q: Integrative—Risk and Valuation Given the following information for the stock of Foster Company,…
A: Computation of expected rate of return:Answer: The risk premium is 7.81%
Q: A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $2 per…
A: This question is asking about the dividend yield, capital gain yield, and total yield on the…
Q: If a security offers a dividend amounting to P 5.23/ share and an investor purchased 200 shares at P…
A:
Q: Dividend yield is computed by dividing next year's annual dividend by the current stock price.…
A: A dividend is the portion of a company's net earnings that are distributed to shareholders after all…
Q: The price-earnings ratio of a stock is given by R(P,E)=P/E where P is the price of the stock and E…
A: A ratio that provides information regarding the share price of a company by relating it to the…
Q: Given the following information for the stock of Foster Company, calculate the risk premium on its…
A: Current price (P0) = $ 49.78 Next dividend (D1) = $ 3.42 Growth rate (g) = 8.2% Risk free rate (Rf)…
Q: Suppose a stock had an initial price of $82 per share, paid a dividend of $1.20 per share during the…
A: Calculation of Dividend Yield and Capital Gains Yield:The dividend yield is 1.46% and capital gains…
Q: Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a…
A: Capital Gain Yield = Year End Price - Initial PriceInitial Pricex100 Dividend Yield = Dividend per…
Q: Suppose a stock had an initial price of $62 per share, paid a dividend of $2.50 per share during the…
A: Here, Initial price of Stock is $62 Ending Price of Stock is $72 Dividend per share is $2.50
Q: An analyst has gathered the following information for a Company: Expected earnings per share $9.31…
A: Expected earning (EPS) = $9.31 Dividend (D1) = $1.96 Growth rate (g) = 2.00% Required return (r) =…
Q: Common stock valuation) Assume the following: the investor's required rate of return is 14 percent,…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: What is the value of a preferred stock thst pays an annual dividend of $4.50 a share and competitive…
A: Preferred stock are the stock which has property of both common stock and debt. It has higher claims…
Calculating Returns: Suppose a stock had an initial price
of $76 per share, paid a dividend of $1.95 per share during
the year, and had an ending share price of $68. Compute the
percentage total return. What was the dividend
yield? The
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- BASIC (Questions 1-18) 1. Calculating Returns Suppose a stock had an initial price of $87 per share, paid a dividend of $2.15 per share during the year, and had an ending share price of $98. Compute the percentage total return. What was the dividend yield? The capital gains yield? LO 1If current price of stock is $25 and you hold it for one year and received dividend of $2.5.You sold it at $27. How much return you received? Show dividend yield and capital gainseparately.A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $6 per share and sells for $87. A. What is the total rate of return on the stock? B. What are the dividend yield and percentage capital gain? C. Now suppose the year-end stock price after the dividend is paid is $72. What are the dividend yield and percentage capital gain in this case?
- Capital gains yield is computed by dividing next year's annual dividend by the current stock price.Select one:TrueFalseA stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $56. Required: a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $48. What are the dividend yield and percentage capital gain in this case? A Required What is the total rate of return for the stock? B Required What is the dividend yield and percentage capital gain? C Required Now suppose the year-end stock price after the dividend is paid is $48. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)Suppose a stock had an initial price of $98 per share, paid a dividend of $3.20 per share during the year, and had an ending share price of $106.What was the dividend yield?
- Dividend yield is computed by dividing next year's annual dividend by the current stock price. true or falseA stock is selling today for $60 per share. At the end of the year, it pays a dividend of $3 per share and sells for $66. Required: a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $51. What are the dividend yield and percentage capital gain in this case?Suppose a stock had an initial price of $82 per share, paid a dividend of $1.20 per share during the year, and had an ending share price of $90. What was the dividend yield and the capital gains yield? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Dividend yield % Capital gains yield %
- Calculating Return Components An investor purchases one share of stock for $50. After one year, they sell the share for $55. During the year, they receive $7 in dividends. a) What was the dividend yield, in percentage terms? b) What was the capital gain from price appreciation on the stock, in percentage terms? c) What was the total return in dollars? What was the total return, in percentage terms?1. The rate at which a stock's price is expected to appreciate (or depreciate) is called the yield. A. current B. total C. dividend D. capital gains 2. The underlying assumption of the dividend growth model is that a stock is worth: A. the present value of the future income that the stock generates. B. the same amount to every investor regardless of his desired rate of return. C. an amount computed as the next annual dividend divided by the market rate of retum. D. an amount computed as the next annual dividend divided by the required rate of return. 3. The total rate of return earned on a stock is composed of which two of the following? 1. current yield II. yield to maturity III. dividend yield IV. capital gains yield A. I and II only B. I and IV only C. II and III only D. III and IV only 4. Which one of the following correctly defines the constant dividend growth model? A. R = (D₁ Po) + g B. Po = (D₁R) + g C. R=(Po Do) + g D. Po = Do ] (R-g) 5. How much are you willing to pay for one…1. (a) What are the two components of most stocks’ expected total return?(b) How does one calculate the capital gains yield and the dividend yield of a stock?(c) If D1 = RM3.00, P0 = RM50, and the expected P at t=1 is equal to RM52, what are the stock’s expected dividend yield, capital gains yield, and total return for the coming year?2. (a) Are stock prices affected more by long-term or short-term performance? Explain.(b) A stock is expected to pay a dividend of RM2 at the end of the year. The required rate of return is rs = 12%. What would the stock’s price be if the growth rate were 4%?What would the stock’s price be if the growth rate were 0%?3. If D0 = RM4.00, rs = 9%, and g = 5% for a constant growth stock, what are the stock’s expected dividend yield and capital gains yield for the coming year?4. (a) Explain what is meant by the terms “horizon (terminal) date” and “horizon (terminal) value”.(b)Suppose D0 = RM5.00 and rs = 10%. The expected growth rate from Year 0 to Year 1 (g0…