You just purchased a share of SPCC for $101. You expect to receive a dividend of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You just purchased a share of SPCC for $101. You expect to receive a dividend of $5 in one year. If you expect the price after the dividend is paid to be $114, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate? The total return you will have earned over the year is %. (Round to two decimal places.) Your dividend yield will be %. (Round to two decimal places.) Your capital gain rate will be %. (Round to two decimal places.) You just purchased a share of SPCC for $101. You expect to receive a dividend of $5 in one year. If you expect the price after the dividend is paid to be $114, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate? The total return you will have earned over the year is %. (Round to two decimal places.) Your dividend yield will be %. (Round to two decimal places.) Your capital gain rate will be %. (Round to two decimal places.)
Expert Answer:
Answer rating: 100% (QA)
Total return can be computed as Dividend Capital gain Current price Substituti... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date:
Students also viewed these finance questions
-
Which value must you assign to a so that f(x) is continuous at x = 5? 5+4x-x x-5 f(x) = If a = a x #5 x=5 then f(x) is continuous at x = 5.
-
You just purchased a share of SPCC for $100. You expect to receive a dividend of $5 in one year. If you expect the price after the dividend is paid to be $110, what total return will you have earned...
-
Mario and Kaitlin are married and file a joint tax return. They have adjusted gross income of $385,000 that includes $4,700 of investment income ($3,000 short-term capital gains and $1,700 of...
-
Choose the best answer. 1. Jan and Dean decided to form a charitable organization, I Love Rock N Rollers, to provide funding to assist former rock and roll group members who have become homeless....
-
Airlines strive to be on time, in part because customers can refer to government-published statistics to select f lights that are most often on time. We have data for 19 airlines for March 2006...
-
On June 14, 1988, Thomas John Heck Jr. executed a note promising to pay Paul D. Heck \($51,000\) at 7 percent interest compounded annually. The note contains the following payment terms: Perpetual 90...
-
The trial balance columns of the worksheet for Dixon Company at June 30, 2017, are as follows. Other data: 1. A physical count reveals $500 of supplies on hand. 2. $100 of the unearned revenue is...
-
An upstart phone company has only two potential large customers, Firm A and Firm B. Firm A's monthly demand for phone calls is Q1 = 2,800 200p (with p measured in cents) and Firm 2's is Q2 =5,000...
-
6) Bill and Ted want to go on an EXCELLENT ADVENTURE (vacation) in 4 years. If their savings account pays 5.75% compounded semi-annually and they are saving $250 per end of month, determine: (5...
-
Wilson Crane is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a single...
-
Felice bought a duplex apartment at a cost of $165,000. Her mortgage payments on the property are $1,520 per month, $666 of which can be deducted from her income taxes. Her real estate taxes total...
-
According to Ball and Brown (1968), what percentage of new information related to earnings is conveyed during annual earnings announcements?
-
When making a decision, managers should focus on what is relevant versus non-relevant information. If a company is going to buy a new machine, what is non-relevant?
-
Smith Dry Cleaners has determined the following about its costs: Total variable expenses are $45,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $40,000....
-
a) Twenty-five adult black ducks from a large flock were trapped and weighed. Their mean weight was 1500g and the variance of their weights was 8100g 2 . Find the 95% confidence intervals for the...
-
Copy and complete the statement. 3800 m ? km =
-
Consider the loan from the previous question: a 60-month, $20,000 car loan with a 6% APR, compounded monthly. Assume that right after you make your 50th payment, the balance on the loan is $3,762.32....
-
Adam Rust looked at his mechanic and sighed. The mechanic had just pronounced a death sentence on his road-weary car. The car had served him well at a cost of $500 it had lasted through four years of...
-
Aluminum maker Alcoa has a beta of about 2.0, whereas Hormel Foods has a beta of 0.45. If the expected excess return of the marker portfolio is 5%, which of these firms has a higher equity cost of...
-
A diffraction grating is a closely spaced array of apertures or obstacles forming a series of closely spaced slits. The simplest type in which an incoming wave front meets alternating opaque and...
-
Find the position of the first minimum for a single slit of width 0.04 \(\mathrm{mm}\) on a screen of \(2 \mathrm{~m}\) distance, when light from a He-Ne laser \(\lambda=\) 6328 is shone on the slit.
-
A GaAs p-n junction has a \(100 \mu \mathrm{m} \times 100 \mathrm{~m}\) cross section and a width of the depletion layer \(W=440 \mathrm{~nm}\). Consider the junction in thermal equilibrium without...
Study smarter with the SolutionInn App