Question
A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $3 per share and sells
A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $3 per share and sells for $84.
Required:
a.What is the total rate of return on the stock?
b.What are the dividend yield and percentage capital gain?
c.Now suppose the year-end stock price after the dividend is paid is $69. What are the dividend yield and percentage capital gain in this case?
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The Legal Environment Today Summarized Case Edition
Authors: Roger LeRoy Miller
8th Edition
130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768
