Suppose a stock had an initial price of $72 per share, paid a dividend of $1.20 per share during the year, and had an ending share price of $79. Compute the percentage total return.
Answer to relevant QuestionsIn Problem 1, what was the dividend yield? The capital gains yield?Assuming that the returns from holding small company stocks are normally distributed, what is the approximate probability that your money will double in value in a single year? What about triple in value?Based on the following information, calculate the expected return and standard deviation for the twostocks:A stock has a beta of 1.25 and an expected return of 14 percent. A risk-free asset currently earns 2.1 percent. a. What is the expected return on a portfolio that is equally invested in the two assets?b. If a portfolio of ...The Zombie Corporation’s common stock has a beta of 1.2. If the risk-free rate is 4.8 percent and the expected return on the market is 11 percent, what is the company’s cost of equity capital?
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