Calculate capital gains yield and total real return

Reference no: EM1366855

Assume a stock had an initial price of $84 each share, paid a dividend of $2.25 each share during year, and had an ending share price of $92. What was the dividend yield? What was the capital gains yield? What was the total return?
2. You bought one of Acme Corporation's 8 percent coupon bonds one year ago for $960.00. These bonds make annual payments and mature 5 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7.4%. If the inflation rate was 3.4% over the past year,,what would be your total real return on investment?
3. You bought a share of 8.5% preferred stock for $103.00 last year. The market price for your stock is now $98.50. What is your total return for last year?
4. A stock has an expected return of 12 percent, its beta is 1.3, and the risk-free rate is 4 percent. What must the expected return on the market be?

Reference no: EM1366855

Questions Cloud

Survival of the military health system : What are the strengths ans threats to the survival of the military health system.

Difference-equilibrium price and equilibrium quantity : Write down the difference between Equilibrium price and Equilibrium quantity. What role does elasticity place?

Write program which will accept list of student-s name : Write a program which will accepts list of student's name, individual scores for quiz1, quiz2 and quiz3. Your program must then compute for average of 3 quizzes.

Human resource management in the health care setting : List three issues and environmental forces facing human resource management in the health care setting today.

Calculate capital gains yield and total real return : Assume a stock had an initial price of $84 each share, paid a dividend of $2.25 each share during year, and had an ending share price of $92. What was the dividend yield?

Computing optimal profits : Compute the best response function of each firm in terms of prices. Compute the resulting equilibrium price quantity combination for each firm. Describe your answer with a suitable graph. Also calculate optimal profits of each firm.

Strategic planning in the health care industry : What is strategic planning and why is it a significant tool in the health care industry?

Answer to business management : Show why budgets, schedules, and key success factors are essential to operations control and evaluation

Equilibrium price and quantity of golf clubs : Assume that both the equilibrium price and quantity of golf clubs rise. Which of the following explanations would best explain this outcome?

User Account

All Pages