A company whose current stock price is $43.44 has been paying a quarterly dividend of $0.77 per
Question:
A company whose current stock price is $43.44 has been paying a quarterly dividend of $0.77 per quarter. What is the annual yield? What should be the price of an 8 month forward contract on this stock if it is now assumed that dividends will accrue continuously at this yield? The risk-free rate is 3 %. What is the value of this forward contract after 5 months if the stock price is $48 then.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Dividend yield The quarterly dividend yield is 077 4344 00177 or 177 The annual dividend yield is 17...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
2+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
