Suppose a stock had an initial price of $65 per share, paid a dividend of $1.45 per
Question:
Suppose a stock had an initial price of $65 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $71. Compute the percentage total return.
DividendA 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...
Step by Step Answer:
The return of any asset is the incr...View the full answer
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Business questions
-
Rework Problems 1 and 2 assuming the ending share price is $58. Data from problem 1 & 2. Suppose a stock had an initial price of $65 per share, paid a dividend of $1.45 per share during the year, and...
-
For Problem 9, suppose the average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 3.9 percent. What was the average real return on the companys stock?...
-
Assume that the historical return on large-company stocks is a predictor of the future returns. What return would you estimate for large-company stocks over the next year? The next 10 years? 20...
-
A guitar string has an overall length of 1.25 m and a total mass of 40 g (0.04 kg) before it is strung on the guitar. Once on the guitar, however, there is a distance of 64 cm between its fixed end...
-
Show that is a basis if and only if there is no plane through the origin containing all three vectors. k, a2, 3) CR
-
In Exercises 118, solve each system by the substitution method. [2x + y = 4 (x + 1) + (y-2) 2) = 4
-
Many researchers are interested in the transcription of protein-encoding genes in eukaryotes. Such researchers want to study mRNA. One method that is used to isolate mRNA is column chromatography....
-
Below are four independent client scenarios: 1. Colburn Pharmacy, Inc., has 77 stores located in the New England area. Approximately 60 percent of the inventory recorded on the balance sheet for the...
-
2. A muon is created in our upper atmosphere and travels toward the ground at 0.998 c. If it's lifetime is 2.2 x 10-6 seconds. What is the lifetime of the muon as observed by the earth's frame of...
-
Zweifel Company has the following opening account balances in its general and subsidiary ledgers on January 1 and uses the periodic inventory system. All accounts have normal debit and credit...
-
Given that AK Steel was up by about 359 percent for 2016, why didnt all investors hold this stock?
-
Suppose you bought a bond with an annual coupon of 7 percent one year ago for $1,010. The bond sells for $985 today. a. Assuming a $1,000 face value, what was your total dollar return on this...
-
Just as object-oriented analysis (OOA) led up to and transitioned into object-oriented design (OOD), so too does OOD lead up to and transition into object-oriented programming. Although this is not a...
-
5. Irwin is involved in both passive and nonpassive activities. Which of Irwin's following involvements is a passive activity? a) Involvement in a trade or business activity in which he does not...
-
Harry receives $1,800 in shares from a foreign company and paid a foreign tax of $300. How much of the foreign income is taxable if Harry chooses to take the foreign tax deduction?
-
If A, B, C, and D, are the only possible outcomes of an experiment, find the probability of D using the table below. Outcome A B C D Probability 1 1 1 13 13 13
-
Suppose we have a 100-volt battery connected with a 50-ohm heater coil. The current is then 100V/50 = 2 amps. The heater coil transforms the current into heat. How much power is needed by the...
-
Begin by describing the image you have chosen and explaining your initial reactions to the image. From there, provide your reader with an analysis of the image, using terms introduced earlier in this...
-
Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfitters throughout the western United States. The accounts receivable clerk for Trophy Fish prepared the following...
-
Read Case Study Google: Dont Be Evil Unless and answer the following: Given its mission of providing information to the world, should Google censor searches in China?
-
Using CAPM A stock has an expected return of 15 percent, its beta is 1.45, and the expected return on the market is 12 percent. What must the risk-free rate be?
-
Using CAPM A stock has a beta of 1.30 and an expected return of 17 percent. A risk-free asset currently earns 5 percent. a. What is the expected return on a portfolio that is equally invested in the...
-
Using the SML Asset W has art expected return of 15 percent and a beta of 1.2, if the risk-free rate is 5 percent, complete the following table for portfolios of Asset W and a risk-free asset,...
-
import java.util.LinkedList; import java.util.Scanner; public class Agency { private Administrator loggedInUser; private Destinations destinations; private Flights flights; private Administrators...
-
When an employer has reason to believe a worker who was already trained in fall protection does not fully understand the safeguards involved in the training, by Code what must the employer do?
-
The perceived deterioration of government services and products is usually attributed to the corrupting influences of power, which may lead those who hold it to act in their self-interest rather than...
Study smarter with the SolutionInn App