Determine expected percentage holding period return

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a. National Telephone and Telegraph (NTT) Company common stock currently sells for $60 per share. NTT is expected to pay a $4 dividend during the coming year, and the price of the stock is expected to increase to $65 a year from now. Determine the expected (ex ante) percentage holding period return on NTT common stock.

b. Suppose that one year later, NTT's common stock is selling for $75 per share. During the one-year period, NTT paid a $4 common stock dividend. Determine the realized (ex post) percentage holding period return on NTT common stock.

c. Repeat Part b given that NTT's common stock is selling for $58 one year later.

d. Repeat Part b given that NTT's common stock is selling for $50 one year later.

Reference no: EM131340174

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