Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Corporation X, with a current market value of 62, gave a dividend of 9 per share for its common stock. Corporation Y, with the current market value of 90, gave a dividend of 11 per share. Which company has higher stock yield ratio?
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- Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $50. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)arrow_forwardABD common stock is selling for $36.08 a share. The company has earnings per share of S.34 and a book value per share of S12.19. What is the market-to-bok ratio?arrow_forwardThe following is the information on preferred stock issued by Huntington Power Co. Calculate the cost of preferred stock for the firm. Preferred Stock: Selling for $98. Dividends are $7 a share. a. 6.12% b. 5.45% c. 7.14% d. 9.57%arrow_forward
- Common versus Preferred Stock Suppose a company has a preferred stock issue and a common stock issue. Both have just paid a $2 dividend. Which do you think will have a higher price, a share of the preferred or a share of the common?arrow_forward9. A small stock dividend is defined by us gaap by a dividend involving 25% of the issued number of common shares. true or falsearrow_forwardNet income, less preferred dividends, divided by the average total number of outstanding shares is the: Group of answer choices A6Return on equity ratio b)Earnings per share c)Book value per share d)Profit margin e)None of the abovearrow_forward
- What effect would the calculation performed have in terms of shareholder value? In other words, suppose the company’s goal is to maximize shareholder value. How will increasing its dividend per share by 1.75 support or inhibit that goal? Be sure to justify reasoning.arrow_forwardComcast is considered a comparable Company to AT&T. It has a P/E ratio of 12.78. Based on that alone, which looks to be a better stock buy? a) AT&T b) Comcastarrow_forwardFlexsteel is giving out a large stock dividend. This would: A. Results in a transfer of retained earnings to the common stock account B. Reduces the par value per share by the percentage of the additional shares issued. C. Is accounted for in exactly the same manner as a stock split D. Results in a transfer of retained earnings to common stock and additional paid in capitalarrow_forward
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