Question
Suppose you expect Longs Drug Stores to pay an annual dividend of $5.70 per share in the coming year. Longs Drug Stores shares are currently
Suppose you expect Longs Drug Stores to pay an annual dividend of $5.70 per share in the coming year. Longs Drug Stores shares are currently traded at $52.50 per share. What dividend yield would you expect at this price?
A. | 12.86% | |
B. | 10.86% | |
C. | 9.86% | |
D. | 11.86% |
A stock is bought for $13 and sold for $15 on year later, immediately after it has paid a dividend of $2.50. What is the capital gain yield for this transaction?
A. | 11.68% | |
B. | 8.45% | |
C. | 15.38% | |
D. | 5.90% |
Thatcher Corporation's bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8% coupon rate, paid semiannually. The bonds have a yield to maturity (YTM) of 6%. What is the price of the bonds?
A. | $1,405.64 | |
B. | $1,024.73 | |
C. | $989.37 | |
D. | $1,148.77 |
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