What is the total rate of return on the stock

Assignment Help Accounting Basics
Reference no: EM133010946

Question: A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $6 per share and sells for $78.

Required:
a. What is the total rate of return on the stock?
b. What are the dividend yield and percentage capital gain?
c. Now suppose the year-end stock price after the dividend is paid is $69. What are the dividend yield and percentage capital gain in this case?

Reference no: EM133010946

Questions Cloud

Discuss four possible limitations of merit pay programs : List and discuss four possible limitations of merit pay programs
Preventing the escalation of workplace conflict : Identify three ways of preventing the escalation of workplace conflict
What would you have done different : What would you have done different? What decision-making model would you utilize to come to that conclusion
Significant role in the success of the business : As part of the vision and values at John Readings, team cohesion and team effectiveness has always played a significant role in the success of the business.
What is the total rate of return on the stock : What is the total rate of return on the stock and What are the dividend yield and percentage capital gain
What is an ethical dilemma : -Please provide in your own words what the author's titles are:" "Discretionary Decision Making," and how is it possibly used in a policing environment?
Complete a workplace risk assessment : Part A - Why is it important to provide information to work teams on the relevant health and safety legislation, the organisation's health and safety policies,
Calculate the amount of the firm''s income before tax : Cost of goods sold of $2,593,591; and interest expense of $190,157. Calculate the amount of the firm's income before tax?
What are two different types of exchanges : What are two different types of exchanges that could occur in your daily work schedule with a client?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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