What is the total percentage return for the investment

Assignment Help Financial Management
Reference no: EM13944978

Suppose you purchase 800 shares of stock at a price of $20 per share. One year later, the shares are selling for $23 per share. In addition, a dividend of $2 per share is paid at the end of each year.

What is the capital gains yield for the investment?

What is the dividend yield for the investment?

What is the total percentage return for the investment?

Reference no: EM13944978

Questions Cloud

Common stock and expects to continue paying dividends : A firm just paid $2.00 on its common stock and expects to continue paying dividends, which are expected to grow 5% each year, from now to infinity. If the required rate of return for the stock is 9%, then the value of the stock is:
Description for a production supervisor : Prepare a position description for a production supervisor which accurately reflects the role requirements in accordance with organizational procedure and WHS considerations
Project with cash flows and required return : What is the net present value of a project with the following cash flows and a required return of 11 percent?
Importance of emerging markets in the world economy : In response to the rapidly growing importance of emerging markets in the world economy, a number of new models of multinational enterprise (MNE) strategy have been put forward.
What is the total percentage return for the investment : Suppose you purchase 800 shares of stock at a price of $20 per share. One year later, the shares are selling for $23 per share. In addition, a dividend of $2 per share is paid at the end of each year. What is the capital gains yield for the investmen..
Program to pick the larger of randomly generated numbers. : Create a Form that contains two randomly generated parallel arrays, each containing 100 numbers.
What fiscal policies and monetary policies : What fiscal policies and monetary policies would be appropriate at this time?
Describe differences between viral and bacterial infections : To complete: Write a 2- to 3- page paper that addresses the following: Describe the categories of antimicrobial agents. Describe differences between viral and bacterial infections
Compare the ytm and the call rate : A bond sells for $1500 and it pays $100 per annum till its maturity 18 years from now. The firm, however, may call it back after 3 years at $1100. Derive its ytm and its call rate. Compare the ytm and the call rate. Are they reasonable? Why, or why n..

Reviews

Write a Review

Financial Management Questions & Answers

  Identify significant differences between UGMA and UTMA

Which of the following statements correctly identify (ies) significant differences between UGMA and UTMA?

  Bond provide yield to maturity

A zero-coupon bond with a par value of $2,000 matures in 10 years. At what price would this bond provide a yield to maturity that matches the current market rate of 8 percent?

  Remainder is invested in T-Bills

You have $100,000 invested. Of that, $50,000 is invested in IVM stock which has a beta of 1.4, $30,000 is invested in UBM stock with a beta of 1.2, and the remainder is invested in T-Bills. Which of the following is true?

  Require an effective annual interest rate

You are considering a 20-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semi-annually. If you require an "effective" annual interest rate (not a nominal rate) of 10.59%, how much should you be willing to pay for the bond? Do..

  What is the cost percentage of a new common stock issue

What is the cost percentage of a new common stock issue?

  About the advertising deal

TV’s R Yours is advertising a deal, in which you buy a flat screen TV for $4,769 (including tax) with one year before you need to pay (no interest is incurred if you pay by the end of the one year). How much would you need to deposit at the end of ea..

  A stock index with a dividend yield of 22nbsp per

a stock index with a dividend yield of 2.2nbsp per annum with continuous compounding is currently standing

  What will be its dividend payout ratio

Puckett product is planning for $5 million in capital expenditures next year. Puckett’s target capital structure consists of 60% debt and 40% equity. If net income next year is $3 million and Puckett follows a residual distribution policy with all di..

  Impact the rating of a bond

Which of the following would impact the rating of a bond?

  Calculate the depreciation tax shield for project in year

Your firm needs a computerized machine tool lathe which costs $49,000 and requires $11,900 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category...

  Aircraft production contract planned for award fiscal year

Time now is February 2015. You have been asked to determine the amount that should be included in the Air Force's FY 2017 budget request for an aircraft production contract planned for award in that fiscal year. The contractor estimates that the cost..

  What is the equivalent after tax yield

A taxable corporate issue yields 7 percent. For an investor in a 35 percent tax bracket, what is the equivalent aftertax yield?

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