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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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