A stock is selling today for $60 per share. At the end of the year, it pays a dividend of $3 per share and sells for $69. 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 $54. What are the dividend yield and percentage capital gain this case?
A stock is selling today for $60 per share. At the end of the year, it pays a dividend of $3 per share and sells for $69. 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 $54. What are the dividend yield and percentage capital gain this case?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 16MC
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