Question
An investor receives a 20% total return by purchasing a stock for $31 and selling it after one year with a 9% capital gain. How
An investor receives a 20% total return by purchasing a stock for $31 and selling it after one year with a 9% capital gain. How much was received in dividend income during the year, and what's the dividend yield?
Multiple Choice
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Dividend: $2.73; Dividend yield: 13.20%
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Dividend: $4.09; Dividend yield: 13.20%
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Dividend: $3.41; Dividend yield: 11.00%
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Dividend: $5.12; Dividend yield: 11.00%
Stock A has a sustainable growth rate of 8.20%, a return on equity of 15.10%, and a return on assets of 13.59%. What would be the amount of dividends paid out per share if the firm's earnings per share is $4.10?
Multiple Choice
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$1.50
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$2.25
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$1.87
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$2.81
Suppose you construct a cross-assets portfolio by including only the Treasury bills and an index mutual fund which represents the overall market. The weight of the Treasury bills in your portfolio is 55%. You know the risk-free rate is 6.74% and the market portfolio return is 10.23%. What's the best prediction on your portfolio's expected return?
Multiple Choice
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9.97%
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9.14%
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8.31%
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6.65%
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