If 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 gain separately. 2. If investor required return is 20% and capital gain is 8% how much dividend company should pay?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
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ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
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STOCK VALUATION
1. If 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 gain separately.


2. If investor required return is 20% and capital gain is 8% how much dividend company should pay?

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