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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

%

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