Question
2. Suppose you buy a stock with $10 today. You sell it with $15 in a year. In this year, it gives you $2 as
2. Suppose you buy a stock with $10 today. You sell it with $15 in a year. In this year, it gives you $2 as the dividend. What is the dividend yield ratio here? What is your capital gain from this stock? If earnings of this firm are $5000 today and the firms have 100 shares outstanding today, what is the P/E ratio today (P/E ratio is the ratio of prices to earnings per share.)?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
