Constant annual dividend-nominal return on this investment

Assignment Help Financial Management
Reference no: EM131058459

Hilltop Garage pays a constant annual dividend. One year ago, when you purchased shares of that stock at $12 a share, the dividend yield was 2 percent. Over this past year, the inflation rate has been 2.6 percent. Today, the required return on this stock is 8 percent and you just sold all of your shares. What is your total nominal return on this investment? (Please explain)

Reference no: EM131058459

Questions Cloud

Evaluation of the argument for its overall strength : An evaluation of the argument for its overall strength: Consider such criteria as clarity, credibility, relevance, completeness, and soundness. Based on this evaluation, do you think the argument presented is a good one? Briefly explain why or why..
Total real rate of return on this investment : Suppose you bought a bond with a coupon rate of 7.6 percent one year ago for $899. The bond sells for $930 today. Required: (a) Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? what was your total..
Dialogue between two artists discussing : Create a dialogue between two artists discussing their work(s) with an interviewer asking questions in front of an audience at an art gallery (much like a panel discussion format). Have Gris or Picasso dialogue with Matisse, Cezanne Gauguin, or va..
Briefly summarize the shapley-curtis debate : When astronomers identify the location of black holes by observing orbiting companion stars, how do they know that these stars are not really orbiting pulsars or white dwarfs?
Constant annual dividend-nominal return on this investment : Hilltop Garage pays a constant annual dividend. One year ago, when you purchased shares of that stock at $12 a share, the dividend yield was 2 percent. Over this past year, the inflation rate has been 2.6 percent. Today, the required return on this s..
Describe a leadership style used in the case study : Evaluate Leadership Theory- Describe a leadership style used in the case study and why there was a shift in leadership style throughout the case study. Explain the characteristics and decisions of management in the case study that help explain the sh..
Bottling companies and sells to the smaller retailers : For the smaller retailers that request smaller quantities of our products they can allow their wholesalers to buy in bulk from the bottling companies and sells to the smaller retailers.
Determine the stock current price : A stock is expected to pay a year-end dividend, D1, of $0.75 per share. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. Show your work in all calculations. Can the Gordon model be used in this case to det..
Question regarding the concepts of population and race : Write an essay that summarizes the difference between the concepts of population and race and identifies the strengths and weaknesses of each. Be sure to discuss these concepts in terms of way they are defined and explained in the on-line notes. D..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd