Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a stock is selling today for $60 per share. at the

A stock is selling today for $60 per share. At the end of the year,...

50.1K

Verified Solution

Question

Accounting

A stock is selling today for $60 per share. At the end of the year, it pays a dividend of $3 per share and sells for $63.

a. What is the total rate of return on the stock? (Enter your answer as a whole percent.)

b. What are the dividend yield and percentage capital gain? (Enter your answers as a whole percent.)

c. Now suppose the year-end stock price after the dividend is paid is $54. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)

d. Is there any change in the dividend yield calculated in parts (b) and (c)?

For Part D, it is either affected/unaffected and it is based on intial price/first price. Choose one of each

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

TRIGONOMETRIC IDENTITIES AND EQUATIONS Sum and difference identities Problem type 2 Radians Use a sum...

Basic Math
Q

Suppose that at the certain factory setup cost is directly proportional to the number of machines...

Basic Math
Q

Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the...

Accounting
Q

The closest known star to our solar system is Alpha Centauri, which is approximately 4.30 light...

Physics
Q

2 Use the square root property to solve the equation x 8 2 Select one...

Basic Math
Q

The Casings Plant of Wyoming Machines makes plastics shells for the companys calculators. (Each calculator...

Accounting
Q

Dn August 2, Jun Company recelves a $6,900,90-day, 11.0% note from customer Ryan Albany as...

Accounting
Q

ilver Company makes a product with peak sales in May of each year. Its sales...

Accounting
Q

The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate...

Accounting
Q

Internal activity analysis ...

Accounting
Q

1. Individuals that are self-employed may participate in Financial Institution-administered retirement accounts that offering tax-deferred...

Finance
Q

Question 25 Regarding company pension plans, "normal retirement age" means what? O An employee cannot...

Finance