Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $5 today and then you sold it for $97. What was your dividend yield and capital gains yield on the investment? A. 5%,3% B. 5%,3% C. 5%,3% D. 3%,5% NoGrowth Industries presently pays an annual dividend of $1.4 per share and it is expected that these dividend payments will continue indefinitely. If NoGrowth's equity cost of capital is 10%, then the value of a share of NoGrowth's stock is closest to A. $16.8 B. $15.4 C. $11.2 D. $14 The Busby Corporation had a share price at the start of the year of $26.3, paid a dividend of $0.66 at the end of the year, and had a share price of $30 at the end of the year. Which of the following is closest to the rate of return of investments in companies with equal risk to The Busby Corporation for this period? A. 13% B. 17% C. 14% D. 15% Suppose you invest in 100 shares of Merck (MRK) at $40 per share and 120 shares of Yahoo (YHOO)at $25 per share. If the price of Merck increases to $45 and the price of Yahoo decreases to $22 per share, what is the return on your portfolio? A. 6% B. 3.2% C. 2% D. 2.7% Sultan Services has 1 million shares outstanding. It expects earnings at the end of the year of $5 million. Sultan pays out 60% of its earnings in total: 40% paid out as dividends and 20% used to repurchase shares. If Sultan's earnings are expected to grow by 5% per year, these payout rates do not change, and Sultan's equity cost of capital is 11%, what is Sultan's share price? A. $30 B. $20 C. $10 D. $50 A stock is expected to pay $0.85 per share every year indefinitely. If the current price of the stock is $17.3, and the equity cost of capital for the company that released the shares is 7.7%, what price would an investor be expected to pay per share five years into the future? A. $18.77 B. $18.22 C. $11.04 D. $17.66 Consider the following average annual returns: A. 11.3% B. 0% C. 16% D. 8.5% The Sisyphean Company's common stock is currently trading for $26.25 per share. The stock is expected to pay a $2.4 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 11%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to A. 0.95% B. 3.8% C. 1.9% D. 2.85% The S\&P 500 index delivered a return of 20%,15%,30%, and 5% over four successive years. What is the arithmetic average annual return for four years? A. 5% B. 3% C. 0% D. 5% A. $913.75 B. $1,028.81 C. $1,075 D. $750 Owen Inc. has a current stock price of $14.9 and is expected to pay a $1 dividend in one year. If Owen's equity cost of capital is 10%, what price would its stock be expected to sell for immediately after it pays the dividend? A. $15.39 B. $16.39 C. $12.31 D. $10.77 UPS, a delivery services company, has a beta of 1.1 , and Wal - Mart has a beta of 0.8 . The risk - free rate of interest is 6% and the market risk premium is 8%. What is the expected return on a portfolio with 50% of its money in UPS and the balance in Wal - Mart? A. 16.3% B. 15% C. 12.9% D. 13.6%