Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You just purchased a share of SPCC for $99. You expect to receive a dividend of $5 in one year. If you expect the

 

You just purchased a share of SPCC for $99. You expect to receive a dividend of $5 in one year. If you expect the price after the dividend is paid to be $113, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate? The total return you will have earned over the year is%. (Round to two decimal places.) Your dividend yield will be%. (Round to two decimal places.) Your capital gain rate will be%. (Round to two decimal places.)

Step by Step Solution

3.40 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the total return we need to add the dividend received to the change ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Corporate Finance

Authors: Berk, DeMarzo, Harford

2nd edition

132148234, 978-0132148238

More Books

Students also viewed these Finance questions

Question

Is there any formal training for teaching?

Answered: 1 week ago