What is the capital gains yield of this stock

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1. Assume that you manage a bond portfolio. Looking ahead to the next twelve to eighteen months, you expect interest rates to rise fairly significantly. What actions might you take to position your portfolio for this anticipated change in rates?

2. If a stock has a 8% of dividend yield and the required rate of 14%, what is the capital gains yield of this stock?

3. When is it appropriate for a company to fund new capital projects with external funds (either debt or equity)? What is the advantage of issuing a bond or stock respectively in order to raise funds for captial projects (and what measurements might the company use to determine (e.g. expected rate of return) whether they should do this or not)?

Reference no: EM131818003

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