1. If the expected rate of return is 15.5% and dividend yield is 6.1. What...
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Finance
1. If the expected rate of return is 15.5% and dividend yield is 6.1. What is the capital gain yield?
a.6.1%
b.15.5%
c.9.4%
d. 21.6%
2. In a stream of past dividends, the initial dividend is $1.25 and the most recent dividend is $1.80. The number of years between these two dividends (n) is 7 years. What is the average growth rate during this seven-year period?
a.5.35%
b.4.35%
c.7.35%
d.6.35%
6.35%
3. Endicott Enterprises Inc. has issued 30-year semiannual coupon bonds with a face value of $1,000. If the annual coupon rate is 14% and the current yield to maturity is 15%, what is the firm's current price per bond?
a.$1,000.00
b.$466.79
c.$934.34
d.$934.20
4. If the price of a stock is $78.60 in fifteen year from now. What is its price in today's dollars if you desire a rate of return of 12%?
a.$6.55
b.$9.43
c.$14.36
d.$15.00
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