Rework Problems 1 and 2 assuming the ending share price is $61. Problem 1 Suppose a stock
Question:
Rework Problems 1 and 2 assuming the ending share price is $61.
Problem 1
Suppose a stock had an initial price of $74 per share, paid a dividend of $1.65 per share during the year, and had an ending share price of $83. Compute the percentage total return.
Problem 2
In Problem 1, what was the dividend yield? The capital gains yield?
Step by Step Answer:
Problem 1 The percentage total return is calculated by adding the dividend yield and the capital gai...View the full answer
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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Constant Growth Dividend Discount Model – This dividend discount model assumes dividends grow at a fixed percentage. They are not variable and are consistent throughout. Variable Growth Dividend Discount Model or Non-Constant Growth model
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