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Question 15 The current dividend yield of CyTrade's stock is 3%. The company Just paid a $1.48 annual dividend today and will pay a dividend
Question 15 The current dividend yield of CyTrade's stock is 3%. The company Just paid a $1.48 annual dividend today and will pay a dividend of $1.54 next year. The dividend growth rate is expected to remain at the current level. What is the required rate of retum on the stock? 655% B.6.82% O C.7.05% O D.7.39% Question 16 Question #16 and #17 use the following setup. The stock price of Amazon has gone up from $1189.00 to $1907.00 in 2018. However, Amazon has not issued and will not issue any dividend in 2018. On the other hand, the stock price of INTEL has dropped from $46.85 to $46.61 in 2018. INTEL will issue a dividend of $1.20 per share in 2018. What is the capital gains yield in 2018 for these two companies? O A. Amazon: 55.2%; INTEL:-2.98%. B. Amazon: 60.39%; INTEL-5.12% C. Amazon: 60.39%; INTEL:-0.51%. O Question 17 What is the dividend yield in 2018 for Amazon and INTEL? Hint: to calculate the dividend yield for INTEL, use the price at the beginning of 2018 ($46.85) AAmazon: 0%; INTEL: 2.56%. Amazon: 0%; INTEL: 2.36%. c,Amazon: 5%; INTEL: 2.98%. o
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