FinCorp Inc. purchased a stock for $50. It expects to receive a dividend of $5 in one

Question:

FinCorp Inc. purchased a stock for $50. It expects to receive a of $5 in one year and to sell the stock immediately afterwards.
a. If the sale price is $75, what is the expected one-year holding period return?
b. If the sale price is $35, what is the expected one-year holding period return?
c. If the actual return was −4 percent, what was the sale price?
d. If the actual return was 15 percent, what was the sale price?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...