Question: A stock will pay $ 3 dividends per share in the coming year. The current stock price js $ 5 0 / share and based

A stock will pay $3 dividends per share in the coming year. The current stock price js $50/ share and based on all relevant information, the expected price one is $55/share.
A: an investor purchases the stock ar tbe current price. What is the dividend yield?
B. What is the total rate of return if the investor pays the current price to invest and receives the dividends and the expected price one year later

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

A digital computer has a memory unit with a capacity of 16,384 words, 40 bits per word. The instruction code format consists of six bits for the operation part and 14 bits for the address part (no...

Q:

(4 points) Given the following information: Your firm is going to pay dividend $2 per share in the next year. The current stock price is $20 per share Firm beta is equivalent to market average...

Q:

(4 points) Given the following information: Your firm is going to pay dividend $2 per share in the next year. The current stock price is $20 per share Firm beta is equivalent to market average...

Q:

Answer the following all part of one question 4. You are a financial manager of a firm and are asked to assess the cost of capital of your firm. You know that Your firm is going to pay dividend $1...

Q:

. 5) An analyst forecasts to have expected dividends of $1.10 year 1 (Divl), $1.20 year 2 (Div2), $1.30 year 3 (Div3), $1.40 (Div4), and $1.50 (Div5) for Fox Company. The stock price is estimated to...

Q:

Chapter 5 Homework (40 points) Ubercrummie and Glitch (U&G) is an apparel company that owns several unrecognizable brands. Therefore, we will not mention them. Comparative balance sheet information...

Q:

I want you to review my answers and provide the feedback( correct answers) Thank you. ### UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT Chapter 7 -- Equity Financing PROBLEM 1 A person is considering...

Q:

analyze Equity investor indicators Analytical observations 2018 2017 Dividend Payout % total dividends decleared $XXX,XXX $1,500 38.41 % 64.82 % Xx.xx% net earnings $2,314 $XXX,XXX Year-End Closing...

Q:

M Marketing Mix of pogle.com/u/0/c/MJEDOTMwMTg4Nz03/a/MjkzNDc5NDQ2OTYz/details Student Resource G... Target Marketing D... C Understanding the.. o Exclusive delivery C... 3 Globo.com - Carrin... Lisa...

Q:

Problem 4 (Total 20 Points): a) Suppose you expect Nike to pay an annual dividend of $0.49 per share in the coming year and to trade $37.40 per share at the end of the year. If investments with...

Q:

1 . Assume Venture Healthcare sold bonds that have a ten - year maturity, a 1 2 percent coupon rate with annual payments, and a $ 1 , 0 0 0 par value. a . Suppose that two years after the bonds were...

Q:

Determine the outflow hydrograph given the inflow hydrograph below. Use Muskingum routing, taking K = 2 hr, x = 0.2, and t = 1 hour. Time (hr)Inflow (m3/s) 1.....................100...

Q:

The Federal Roads Office FEDRO plans to increase the capacity on the A1 between Winterthur-Tss and Winterthur-Wlflingen by adding lanes. At the same time, a comprehensive repair of the existing road...

Q:

check\ What is the belief in one all-powerful, just, and personal God called? 10 Animism b) Polytheism e) Henotheism d) Monotheism is a holiday that celebrates the exodus of the Jewish people from...

Q:

Refer to the Mining Engineering (Oct. 2004) study of a new technology for producing high quality iron nuggets, Exercise 16.2. The data on percent carbon change in produced nuggets for 33 time...

Q:

According to the Rubber Manufacturers Association, there are approximately 300 million tires scrapped each year in the U.S. The summary table below describes the fate of these scrapped tires. a....

Q:

The flow of air in the upper atmosphere is largely from a. east to west b. west to east c. north to south d. south to north

Q:

Let A = {R| R is a regular expression describing a language containing at least one string w that has 111 as a substring (i.e., w = x111y for some x and y)}. Show that A is decidable.

Q:

Refer to the Baseball 2018 data, which include information on the 2018 Major League Baseball season. The data include the mean player salary since 2000. Plot the information and develop a linear...

Q:

It is common for customers to leave a queue before being served. This kind of behavior is known as _ _ _ _ _ _ _ _ . A . ratifying B . jockeying C . balking D . reneging

Q:

Describe the different ways in which the preceding chapters relate to one another

Q:

Explain the need for a critical analytical approach to studying HRM

Q:

=+1. Use vernacular when it fits So when do you use vernacular, or everyday, informal speech?