How much of the return came from dividend yield and how much

Assignment Help Finance Basics
Reference no: EM13493684

1.You bought a stock one year ago for $50 per share and sold it today for $55 per share. It paid a $1 per share dividend today.

a. What was your realized return?

b. How much of the return came from dividend yield and how much came from capital gain?

2.Repeat Problem 4 assuming that the stock fell $5 to $45 instead.

a. Is your capital gain different? Why or why not?

b. Is your dividend yield different? Why or why not?

3.Using the data in the following table, calculate the return for investing in Boeing stock from January 2, 2003, to January 2, 2004, and also from January 2, 2008, to January 2, 2009,assuming all dividends are reinvested in the stock immediately.

 

2031_price.jpg

Reference no: EM13493684

Questions Cloud

Sample mean : A sample of n = 4 scores is obtained from a population with m = 70 and mc005-1.jpg = 12. If the sample mean corresponds to a z-score of 2.00, then the sample mean must be _____.
Experiments do a better job of assessing casuality : What components differentiate experiments from the non-experimental methods discussed in modules 2 and 3? How do experiments do a better job of assessing casuality?
Mind-body connection affect our emotions : How does the mind-body connection affect our emotions?
Test retest reliability with inter-rater reliability : Test retest reliability with inter-rater reliability. content validity with both with both predictive validity and and construct validity. internal validity with external validity
How much of the return came from dividend yield and how much : You bought a stock one year ago for $50 per share and sold it today for $55 per share. It paid a $1 per share dividend today. What was your realized return? How much of the return came from dividend yield and how much came from capital gain?
Calculate the expected return : The following table shows the one-year return distribution of Startup, Inc. Calculate The expected return.The standard deviation of the return.
Discuss the contract between fce and free-rider pte ltd : Advise John on the approaches that a principal could adopt to limit an agent's authority. Discuss which is the most pragmatic approach for John and explain it to John. Demonstrate well developed written proficiency.
How long until you hear the splash : You drop a stone down a well that's 9.5m deep. How long until you hear the splash? Assume the speed of sound in air is 343m/s
What is the magnitude of the force that you exert on handle : You are trying to lose weight by working out on a rowing machine. Each time you pull the rowing bar (which simulates the "oars") toward you, What is the magnitude of the force that you exert on the handle

Reviews

Write a Review

Finance Basics Questions & Answers

  Using a financial calculator for mortgage loans

Lucy wishes to buy a house and has approached a bank and been informed that a thirty year mortgage loan with monthly payments and compounding would have an APR of 5.4 percent.

  Develop a financial plan to evaluate the venture

Develop a financial plan to evaluate the venture and its viability.

  Company dividend policy

Present your own company's dividend policy or research a publicly-held company's dividend policy and summarize your findings. Include whether the company has changed its policy in the last few years.

  Which of the following actions would improve firm liquidity

Which of the following actions would improve a firm's liquidity?

  The importance of a personal financial plan is essential

the importance of a personal financial plan is essential. economic issues are one of the major areas that can affect

  Investment to make contributions to employer-s fund

If John suppose his investments would earn 8% annually, and his life expectancy is 80 years, must he invest in his own plan or must he make contributions to his employer's fund?

  What is the firm expected rate of return

Preston Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return?

  Which risky asset should the investor choose

Suppose that an investor must pick either A or B to hold in some combination with the riskless asset (RF = 8%). Which risky asset should the investor choose?

  Stat 101 given a data series that is normally distributed

stat 101 given a data series that is normally distributed with a mean of 100 and a standard deviation of 10 about 95

  Strayer university all rights reserved this document

2013 strayer university. all rights reserved. this document contains strayer university confidential and proprietary

  How much stock c must he replace with stock d

which has a beta of 1.0, to his portfolio. If the investor wants his portfolio to have a beta of 1.72, how much stock C must he replace with stock D?

  Determine the continuously compounded rate of interest

Determine the continuously compounded rate of interest which is equivalent to 5.00% per year compounded quarterly.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd