Reference no: EM133344308

Question: Problem Set for Equity Yaluation l. Yon Hora Corporation is expected to pay a dividend of $1.40 per share at the end afthig year and a Slit] per share at the end of the second year. You expect Yen Bora's stock price to be $25.01} at the end of two years. Yon Bora's equity cost ofcapital is l?'iit a. What is the price that you would be willing to pay today t'era share efYon Hora stock. i you plan to hold the steel»: for two years? 11. Suppose you plan to hold Yon Bora stock For one year. I|What is the price that you would expect to be able to sell a share or Yon Bera stock in one year"? c. Suppose you plan to hold 1|v'on Bora stock for only one year. What is your capital gain from holding Yon Beta stock for the first year? :

Suppose you plan to hold Yon Beta steel: for only one year. What is the capital gain w from holding Yon Bora steel: for the ?rst year? c. Suppose you plan to hold Yon Eora stock for only one year. What is your dividend yield from holding Yon Beta stock fertho ?rst year"? 1'. Suppose you plan on purchasing Yon Bore stock. in one year. right after the $I.4tl dividend is paid. You then plan on selling your stock at the end of year two, right alter the SLSD dividend is paid. What is capital gain rate that you will receive on your investment? g. Suppose you plan on purchasing Yon Hora stock in one year. right atter the Sim} dividend is paid. You then plan on selling your stock at the end of year two. right after the SLSU dividend is paid. What is the dividend yield that you will receive on your investment"? 11. Suppose you plan on purchasing Yon Bore stock in one year. right after the SI .4!) dividend is paid. You then plan on selling your stock at the end of year two, right after the $1.51) dividend is paid. What is the total return that you will receive on your investment? i. Suppose you plan to hold Yon ?ora stock for only one year. Calculate your total return From holding Yen ?ora steel: for the ?rst year.