Question
The price of a share of stock is currently $100, and your time horizon is one year. You expect the cash dividend during the year
The price of a share of stock is currently $100, and your time horizon is one year. You expect the cash dividend during the year to be $3, so your expected dividend yield is 3%.
Your HPR will depend on the price one year from now. Suppose your best guess is that it will be $105 per share. If you are right, the HPR will be?
HPR =
- What amount represents the capital gain?
- What amount represents the dividend yield?
- What is the HPR or Total Return of the investment?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J Hughes
9th Edition
0073382329, 9780073382326
