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The price of a share of stock is currently 5100, and your time horizon is one year. You expect the cash dividend during the year
The price of a share of stock is currently 5100, 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 = 1) What amount represents the capital gain? 2) What amount represents the dividend yield? 3) What is the HPR or Total Return of the investment
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