Determine the percentage total return

Assignment Help Financial Management
Reference no: EM132019607

Suppose a stock had an initial price of $101 per share, paid a dividend of $3.20 per share during the year, and had an ending share price of $80.00.

Requirement 1:

Compute the percentage total return. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Percentage total return %

Requirement 2:

What was the dividend yield? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Dividend yield %
3.17%

Requirement 3:

What was the capital gains yield? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Capital gains yield %

Reference no: EM132019607

Questions Cloud

What is the intrinsic value of the stock at current year : If you require a return of 10% on investments of this risk, what is the intrinsic value of the stock at current year?
What is your rate of return for each alternative : What is your rate of return for each alternative for the following four possible stock prices 6 months from now?
Explain how would you form an options strategy : Suppose a stock has historical volatility of 15% and the market is pricing options on that stock based on this historical volatility.
Calculate the present value of growth opportunities : Using the constant-growth DDM calculate the required rate of return of an investor in Kandi Technologies who purchases the stock at $10.
Determine the percentage total return : Suppose a stock had an initial price of $101 per share, paid a dividend of $3.20 per share during the year, and had an ending share price of $80.00.
Compute the dividend yield and the capital gains yield : Suppose a stock had an initial price of $62 per share, paid a dividend of $1.10 per share during the year, and had an ending share price of $53.
Compute the percentage total return : What was the dividend yield and the capital gains yield?Compute the percentage total return.
Is holding this stock alone attractive compared to holding : Suppose Target's stock has an expected return of 20 % and a volatility of 37 %, Hershey's stock has an expected return of 12 % and a volatility of 25 %,
State how you would form an options strategy : Suppose you have had a stock for a long time and are not happy with the recent cut in dividend with that stock.

Reviews

Write a Review

Financial Management Questions & Answers

  Part aassume that you are a financial analyst working

part aassume that you are a financial analyst working for muscat investment l.l.c. evaluate the financial

  Real interest? rates: approximation method

You are considering investing money in Treasury bills and wondering what the real? risk-free rate of interest is. what is the real? risk-free rate of? interest?

  The net gains and losses at different prices

Assume you buy a put option on a stock at a strike price of $30. Draw a diagram showing the net gains/losses at different prices.

  Gains in terms of yield rates depending on the bond

Suppose that the Johnson family has the option of purchasing two bonds. • Bond A is a $4000 10% 10 year bond paying annual coupons with redemption value $2000, which can be purchased at a premium for $3000. This bond can optionally be sold at the end..

  Anticipating an apple appreciation

Anticipating an Apple appreciation, you buy a 10/2016 $120 American-style Apple call option for $2.00 today. Being an American-style, you can early exercise it in September. If you early exercise this call in September, what will be the payoff in Sep..

  How much money will she have in her account in 10 years

If Lena invests 8,400 dollars in 6 year(s) from today and 9,600 dollars in 5 year(s) from today in an account.

  Rate of return does investor expect to receive on stocks

Silver coin corp.'s preferred stock is currently selling for $67. The company pays $8 annual dividends on this preferred stock. Which rate of return does the investor expect to receive on this stock if the stock is purchased today?

  What is the value of the gold mine

You have received an offer to buy a lease for 1 week's worth of production in a particular gold mine.- What is the value of the gold mine?

  The omnibus reconciliation act

The Omnibus Reconciliation Act of 1981 changed the intergovernmental assistance system by:

  What was their federal tax bill

Your company has sales of $425,000; cost of goods sold = $200,000. The company paid interest of $25,000 on a loan and received $20,000 in dividends from GE. They paid $55,750 in common stock dividends and $10,000 in preferred stock dividends. What wa..

  Expansion of production capacity by investing in project

ABC Corp. is considering expansion of its production capacity by investing in a project with the following unlevered cash flows (UCF): Year 0: -$30 million Year 1: +$10 million Year 2: +$8 million Year 3 and all future years: +$5 million ABC Corp. Ig..

  Bonds is the most liquid

Which of the following bonds is the most liquid?

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