Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a dividend of $.46 per share during the following year, and the share price at the end of the year was $50. a.Capital Gains Yield b.Divadend Yield c.Total rate of return

Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a dividend of $.46 per share during the following year, and the share price at the end of the year was $50. a.Capital Gains Yield b.Divadend Yield c.Total rate of return

Name: Suppose you bought 150 shares of stock at an initial price of $47 per
Uploaded: 2024-03-20T06:51:32.000Z
Channel: Bartleby
Description: Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a dividend of $.46 per share during the following year, and the share price at the end of the year was $50.a.Capital Gains Yield b.Divadend Yieldc.Total rate

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section7.4: Valuing Common Stocks

Problem 3ST

See similar textbooks

Similar questions

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?
Calculating Returns: Suppose a stock had an initial priceof $76 per share, paid a dividend of $1.95 per share duringthe year, and had an ending share price of $68. Compute thepercentage total return. What was the dividendyield? The capital gains yield?
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 gainseparately.
Suppose you bought 1,050 shares of stock at an initial price of $55 per share. The stock paid a dividend of $.64 per share during the following year, and the share price at the end of the year was $50. a. Compute your total dollar return on this investment. (A negative value should be indicated by a minus sign.) b. What is the capital gains yield? (A negative value should be indicated by a minus sign. c. What is the dividend yield?
Suppose you bought a stock for $22.7 per share and then sold it for $14.7 per share. In the mean time, you received dividends of $1 per share. What was your total return from this investment? Answer in percent rounded to one decimal place.
You buy a share of The Ludwig Corporation stock for $21.40. You expect it to pay dividends of $1.07, $1.1449, and $1.2250 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $26.22 at the end of 3 years. a. Calculate the growth rate in dividends. b. Calculate the expected dividend yield. c. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock’s expected total rate of return? (Assume the market is in equilibrium with the required return equal to the expected return.)
Suppose a stock had an initial price of $47 per share, paid a dividend of $0.63 per share during the year, and had an ending share price of $38. What was the capital gains yield? O-19.15 percent -23.68 percent 20.31 percent 17.39 percent -18.53 percent
Perferred Stock valuation. Stock that sells for $30.00 a share and pays dividend of $2.75 at the end of a year. What is the required rate of return?
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.
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 %
A 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?
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 1