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 $55 in one year. If you expect the price

You just purchased a share of SPCC for $99. You expect to receive a dividend of $55 in one year. If you expect the price after the dividend is paid to be $110, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate? please explain each step

The total return you will have earned over the year is %

To calculate the total return, use the following formula:

Your dividend yield will be %

To calculate the dividend yield, use the following formula:

Your capital gain rate will be %

To calculate the capital gain rate, use the following formula:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

The Handbook Of Fixed Income Securities

Authors: Frank Fabozzi, Steven Mann, Francesco Fabozzi

9th Edition

1260473899, 978-1260473896

More Books

Students also viewed these Finance questions