Question
1)You own 300 shares of Western Feed Mills stock valued at $36.72 per share. What is the dividend yield if your annual dividend income is
1)You own 300 shares of Western Feed Mills stock valued at $36.72 per share. What is the dividend yield if your annual dividend income is $342? 3.4 percent
4.8 percent
8.4 percent
3.1 percent
10.7 percent
2)
Suppose a stock had an initial price of $52 per share, paid a dividend of $1.00 per share during the year, and had an ending share price of $62. |
Compute the percentage total return.(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
Total return | % |
3)
Youve observed the following returns on SkyNet Data Corporations stock over the past five years: 19 percent, 13 percent, 16 percent, 21 percent, and 10 percent. Suppose the average inflation rate over this period was 1.4 percent, and the average T-bill rate over the period was 4.5 percent. |
a. | What was the average real return on the stock?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
Average real return | % |
b. | What was the average nominal risk premium on the stock?(Do not round intermediate calculations and enter your answer as a percent rounded to 1decimal place, e.g., 32.1.) |
Average nominal risk premium | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started