Question
A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells
A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $58.
A. The rate of return on the stock is ..%
B. The dividend yield = % and the capital gain = .%
C. T-Bills return 5% over the same period. The risk premium on the stock is %
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Basic Finance An Introduction To Financial Institutions Investments And Management
Authors: Herbert B. Mayo, Michael J Lavelle
13th Edition
0357714741, 978-0357714744
