FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock just paid its $3 dividend and the stock is currently selling at $90 per share. If the beta for this stock is 1.2,

A stock just paid its $3 dividend and the stock is currently selling at $90 per share. If the beta for this stock is 1.2, risk free return 4% and market total return is 9%, what is its expected dividend yield and capital gain yield for this coming year? Assume that this stock is in a market equilibrium.

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

Bitcoin And Astrology

Bitcoin And Astrology

Authors: Maya Raghavan

1st Edition

979-8686984776

More Books

Students also viewed these Finance questions

Question

★★★★★
If the frequency is doubled in a series RLC circuit, what happens to the resistance, the inductive reactance, and the capacitive reactance?

Answered: 1 week ago

Question

★★★★★
The following transactions relate to Toy Manufacturers Company during the month of June. (a) Calculate the profit on sale. (b) Explain the effect of each transaction on the accounting equation. (c)...

Answered: 1 week ago

Question

★★★★★
=+a. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank.

Answered: 1 week ago

Question

★★★★★
MFG Company experiences the following cost behavior patterns each week: Fixed costs: supervisor's salary $1,000; factory rent $2,500 Mixed costs: utilities $1,500 + $5.25 per unit Variable costs per...

Answered: 1 week ago

Question

★★★★★
A stock just paid its $3 dividend and the stock is currently selling at $90 per share. If the beta for this stock is 1.2, risk free return 4% and market total return is 9%, what is its expected...

Answered: 1 week ago

Question

★★★★★
Estimating doubtful accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the companys accounts receivable on December 31 and a historical analysis of the percentage of...

Answered: 1 week ago

Question

★★★★★
28. Yakuza Company issued 2,500 share of P25 par value preference shares with detachable warrants. The security package sells for P105. Each warrant enables the holder to purchase two shares of P10...

Answered: 1 week ago

Question

★★★★★
Good Vibes Manufacturing is a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2.5 million of inventory...

Answered: 1 week ago

Question

★★★★★
A random sample of 45 Burger King Whoppers found a sample mean weight of 120g and a sample standard deviation of 15g. Find the 90% confidence interval of the true mean weight of a Whopper. Write your...

Answered: 1 week ago

Question

★★★★★
Ignoring GST, which of the following entries correctly records the purchase of land for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20-year, 6% loan? Select one: a. DR...

Answered: 1 week ago

Question

★★★★★
Sizwe conditioners a manufacturing firm based in Gauteng makes three different types of air conditioners: the ceiling type, the cassette type and the wall mounted type. Weekly sales of each type are...

Answered: 1 week ago

Previous Question Next Question