Question: Did return on a common stock is equal to a capital gain rate plus dividend yield be the capital gain rate minus dividend yield C

Did return on a common stock is equal to a capital gain rate plus dividend yield be the capital gain rate minus dividend yield C one plus capital gain rate divided by one plus dividend yield one plus dividend yield times one plus capital gain rate minus one

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!

2. There are two bonds that a bond fund manager is considering. Bond A has a coupon rate of 5% and Bond B has a coupon rate of 8 %. Both bonds are paying interest semi-annually, have a par value of...

D) Enper) Answer: 26. A bond is paying an annual coupon of 5%. Its YTM is 6%. What is the bond's current yield? A) 4.9% Pon of 5%. Its par value is $1,000 and its current price is $980. The B) PV =...

Select all relevant.] The total rate of return on a share of common stock consists of and a capital gains yield a dividend yield a dividend a capital gain a capital gains growth rate a dividend...

this is Finance questions ! please, help me for this . thnk FINA3313-005 Homework 2 Fall 2015 FINA3313-005 Homework 2 Chapter 04 Measuring Corporate Performance True / False Questions 1. The higher...

True / False Questions 67. The dividend discount model indicates that the value of a stock is the present value of the dividends it will pay over the investor's horizon, plus the present value of the...

40. If there are 11 open positions on the board of directors of Mars & Asteroids, LLC, you need to control _____ percent plus one of the outstanding shares to guarantee that the candidate of your...

The holding period return on a stock is equal to _____. the capital gain yield over the period plus the inflation rate the capital gain yield over the period plus the dividend yield the current yield...

12. Suppose you formed a 1-stock portfolio, then added one randomly-picked stock at a time to the portfolio, continuing until the portfolio contained every publicly traded stock. Draw a ?reasonable?...

Now use the historical returns data in Table 2-1 to calculate Market, Games, and Outplace?s standard deviations, beta coefficients, correlation coefficients with the market, and R2 values. Discuss...

3) The expected return on a common stock is equal to: A) [(1 + dividend yield) (1 + capital gain rate)] 1. B) the capital gain rate + dividend yield. C) (1 + capital gain rate) / (1 + dividend...

There is frequently a difference between the purchase price and the selling price of treasury stock. Why isnt this difference shown as a gain or a loss on the income statement?

The beam is subjected to the two forces shown. Express each force in Cartesian vector form and determine the magnitude and coordinate direction angles of the resultant force. Given: F1 = 630 lb...

Standard deviation measures the total risk of an investment. Question 7 options: TrueFalse

W Ltd uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate of 250% based on direct labor costs. The following information...