What are dividend yield and percentage capital gain

Assignment Help Financial Management
Reference no: EM131561935

A stock is selling today for $25 per share. At the end of the year, it pays a dividend of $2 per share and sells for $28.

a. What is the total rate of return on the stock? (Enter your answer as a whole percent.)

  Rate of return %  

b. What are the dividend yield and percentage capital gain? (Enter your answers as a whole percent.)

  Dividend yield %  

  Capital gains yield %  

c. Now suppose the year-end stock price after the dividend is paid is $21. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)

  Dividend yield %  

  Capital gains yield %  

d. Is there any change in the dividend yield calculated in parts (b) and (c)?

  The dividend yield is (Click to select) affect edunaffected; it is based on the (Click to select)initial pricefinal price.

Reference no: EM131561935

Questions Cloud

Market-value and book-value based debt ratios : What are the biggest determinants of the year-to-year changes in IBM’s market-value and book-value based debt ratios, respectively?
Replacing their current fleet of delivery vehicles : Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. what will the cash flows for this project be?
Is each stock undervalued-fairly valued or overvalued : Calculate the required return for each stock. Is each stock undervalued, fairly valued, or overvalued?
What is the beta of your portfolio : The betas for the stocks are 1.4, 1.1, and .6, respectively. What is the beta of your portfolio?
What are dividend yield and percentage capital gain : What is the total rate of return on the stock? What are the dividend yield and percentage capital gain?
Steven have earned in interest after one year : Steven recently won $1 in the scratch-n-play lotto. How much money will Steven have earned in interest after one year?
Lessor recover to break even in perfect market with no risk : What residual value must the lessor recover to break even in a perfect market with no risk?
Required equal payment to retire the loan in eight years : What is the required equal payment to retire the loan in eight years?
Funds available under pledging and under factoring : What is the effective interest rate and the average amount of funds available under pledging and under factoring?

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