Suppose Microsoft, Inc., is trading at $27.29 per share. It pays an annual dividend of $0.32 per

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Suppose Microsoft, Inc., is trading at $27.29 per share. It pays an annual dividend of $0.32 per share, and analysts have set a one-year target price around $33.30 per share. What is the expected return of this stock?


eBay, Inc., went public in September of 1998. The following information on shares outstanding was listed in the final prospectus filed with the SEC.

In the IPO, eBay issued 3,500,000 new shares. The initial price to the public was $18.00 per share. The final first day closing price was $44.88.


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...
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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