Question: Why might the Standard Poor s 500 Index be a
Why might the Standard & Poor’s 500 Index be a better measure of stock market performance than the Dow Jones Industrial Average? Why is the DJIA more popular than the S&P 500?
Answer to relevant QuestionsWhich is higher, the ask quote or the bid quote? Why? The expected return derived from the constant growth rate model relies on dividend yield and capital gain. Where do these two parts of the return come from? Explain why using the P/E relative value approach may be useful for companies that do not pay dividends. Annual dividends of AT&T Corp (T) grew from $0.96 in 2000 to $1.76 in 2012. What was the annual growth rate? A firm recently paid a $0.60 annual dividend. The dividend is expected to increase by 12 percent in each of the next four years. In the fourth year, the stock price is expected to be $110. If the required return for this ...
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