What was dividend yield and the capital gains yield

Assignment Help Financial Management
Reference no: EM131078240

Suppose a stock had an initial price of $80 per share, paid a dividend of $0.60 per share during the year, and had an ending share price of $88. What was the dividend yield and the capital gains yield?

Reference no: EM131078240

Questions Cloud

Total dollar return on this investment over the past year : Suppose you bought a 7.4 percent coupon bond one year ago for $900. The bond sells for $940 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total nominal rate of return on th..
Capital budgeting criteria-ethical considerations : A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. The firm could spend an additional $10 million at Year 0 to mitigate the environ..
Pension plan is obligated to make disbursements : A pension plan is obligated to make disbursements of $2.7 million, $3.7 million, and $2.7 million at the end of each of the next three years, respectively. Find the duration of the plan's obligations if the interest rate is 10% annually.
Cost of the party as an entertainment expense : Evander, an officer in the Marine Corps, was appointed commanding officer of the Marine training base in Beaufort, S.C. As is customary in connection with changes in command, he hosts a party at his home for officers and guests the night before he as..
What was dividend yield and the capital gains yield : Suppose a stock had an initial price of $80 per share, paid a dividend of $0.60 per share during the year, and had an ending share price of $88. What was the dividend yield and the capital gains yield?
What is the portfolio beta : You own a stock portfolio invested 34 percent in Stock Q, 18 percent in Stock R, 36 percent in Stock S, and 12 percent in Stock T. The betas for these four stocks are 1.03, 1.09, 1.49, and 1.94, respectively. Required: What is the portfolio beta?
Describe the different types of leases : Describe the different types of leases. Explain how they would benefit managers for financial planning. Select one lease option and describe the advantages and disadvantages of selecting that option in your role as manager. In response to your peers,..
What must the risk-free rate be : A stock has an expected return of 15 percent, its beta is 1.35, and the expected return on the market is 13 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)
What is maximum price you would pay for sunblocker stock : You are considering acquiring SunBlocker Oil common stock that you would like to hold for one year. You expect to receive both $2.50 in dividends and $37 from the sale of the stock at the end of the year. You require a minimum rate of return of 15%. ..

Reviews

Write a Review

Financial Management Questions & Answers

  Discuss whether juan can set aside this contract

Juan is an elderly man who lives with his nephew, Samuel. Juan is totally dependent on Samuel's support. Samuel tells Juan that unless he transfers a tract of land he own to Samuel for a price 35 percent below its market value, Samuel will no longer ..

  An investment offers a total return

An investment offers a total return of 12 percent over the coming year. Bill Bernanke thinks the total real return on this investment will be only 7.3 percent. What does Bill believe the inflation rate will be over the next year?

  Non constant growth-what is the value of the stock

Micro Tech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Micro tech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from to..

  What is formula for total costs of particular service-system

What is the formula for total costs of a particular service or system? Relate this formula to the management of medical systems, providing at least two specific examples of applications. Your response should be at least 200 words in length.

  After paying the stock dividend

(Stock dividends) In the spring of 2014 the CFO of Placebo Pharmaceuticals, Inc. took a proposal to the firm's board of directors to distribute a noncash dividend to the firm's shareholders in the form of new shares of common stock. After paying the ..

  Oxygen optimization stock has an expected return

Oxygen Optimization stock has an expected return of 14.49 percent and pays annual dividends that are expected to grow at a constant rate forever. The firm’s next dividend is expected in 1 year from today and is expected to be 24.12 dollars. If the fi..

  What is WACC for the firm with its new capital structure

An unlevered firm, CEA Inc., has 160,000 common shares issued and outstanding. It has a perpetual constant EBIT of $800,000 and an unlevered beta of 1.5. The firm has corporate tax rate of 40%. The market risk premium is 8% and the risk- free rate is..

  What is the firms cost of equity

Tina Fashions is expected to pay an annual dividend of $1.10 a share next year. The market price of the stock is $21.80 and the growth rate is 4.5 percent. What is the firm's cost of equity?

  Why is it important for company abc to know its wacc

If Company ABC wanted to lower its WACC, what could it do? Why is it important for Company ABC to know its WACC?

  Rate of return to differ from the companys cost of capital

Two factors that cause the investor's required rate of return to differ from the company's cost of capital are_____.

  Classic retirement problem

This is a classic retirement problem. A time line will help in solving it. Your friend is celebrating her 40th birthday today and wants to start saving for her anticipated retirement at age 65. What amount must she deposit annually now to be able to ..

  What is your investment strategy-stock to put into portfolio

You have $1,000,000 to invest. What is your investment strategy? How did you select the number of stocks to put into your portfolio? Explain why the stocks you choose fit into your personal investment goals.

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