Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

23 A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and

image text in transcribed
image text in transcribed
image text in transcribed
23 A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $46. 01:21:39 a. What is the total rate of return on the stock? (Enter your answer as a whole percent.) Rate of % return What are the dividend yield and percentage capital gain? (Enter your answers as a whole percent.) Dividend yield Capital gains yield % Now suppose the year-end stock price after the dividend is paid is $34. What are the c. dividend yield and percentage capital gain in this case? (Negative amounts should be Indicated by a minus sign. Enter your answers as a whole percent.) % Dividend yield Capital gains yield % d. Is there any change in the dividend yield calculated in parts (b) and (c)? The dividend yield is (Click to select) (Click to select) it is based on the a. What is the total rate of return on the stock? (Enter your answer as a whole percent.) Rate of return 15.00 % 01:20:27 What are the dividend yield and percentage capital gain? (Enter your answers as a whole percent.) Dividend yield Capital gains yield % Now suppose the year-end stock price after the dividend is paid is $34. What are the c. dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.) % Dividend yield Capital gains yield % d. Is there any change in the dividend yield calculated in parts (b) and (c)? The dividend yield is based on the Click to select) Click to select) affected unaffected Me Hill

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Emerging Markets And The Global Economy A Handbook

Authors: Mohammed El Hedi Arouri, Sabri Boubaker, Duc Khuong Nguyen

1st Edition

0124115497, 978-0124115491

Students also viewed these Finance questions