What is the total rate of return on the stock

Assignment Help Financial Management
Reference no: EM13730486

A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $55.

a. What is the total rate of return on the stock?

b. What is the dividend yield?

c. What is the Capital Gains Yield?

Reference no: EM13730486

Questions Cloud

Differences between a commissary and a central distribution : Identify and discuss the differences between a commissary and a central distribution center including the advantages/disadvantages of each
What is the amount of the firms net working capital : Scare Train, Inc. has the following balance sheet statement items; current liabilities of $875,962; net fixed and other assets of $1,921,620; total assets of $3,463,330; and long-term debt of $602,676. What is the amount of the firm’s net working cap..
Retirement strategy is to invest : Your retirement strategy is to invest 500 per month in an equity mutual fund and 200 per month in a bond fund. Your retirement date is 30 years from now. The expected return on the stock fund is expected to be 8% and the expected return on the bond f..
Why did british victories, in north, bring them no success : why did British victories, in the North, bring them no success?
What is the total rate of return on the stock : A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $55. What is the total rate of return on the stock? What is the dividend yield? What is the Capital Gains Yield?
What does convergence mean in relation to digital media : What does "convergence" mean in relation to digital media? What does it mean to experience a film via several different "platforms"?
How long have you been doing this : How long have you been doing this, Is this something that I can fix myself or do I need to hire you
Calculate amount of firms after-tax cash flow from operation : Company A has sales of 4,481,550; income tax of 531,834; the selling, general, and admin expenses of 267,714; depreciation of 380,725; costs of goods sold of 2,496,660; and interest expense of 178,814. Calculate the amount of the firm's after-tax cas..
Discuss the fit between the company strategy : Provide a situational analysis of the company under investigation - Discuss the fit between the company strategy and its context.

Reviews

Write a Review

Financial Management Questions & Answers

  What profit margin must the firm achieve

A firm has a debt-equity ratio of 0.45 and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at 1.25.If the firm would like to have a sustainable growth with a value of 6 percent per year, what profit margin must t..

  What is its self-supporting growth rate

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,200,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

  What is the yield to maturity for the bond

A bond has a par value of $1,000, pays $50 semi-annually and has a maturity of 10 years. If the bond earns 12% per year, what is the price of the bond? What is the yield to maturity for the bond? What would be the bond's price if the rate earned decl..

  Find out who the producers of pvc pipe

Find out who the producers of PVC pipe are in the US and call up the plant and talk to the plant manager or the sales manager.

  Increase its ratio of total debt-total assets

If a company decides to increase its ratio of total debt / total assets from 30% to 50% as a means of increasing its return on equity (ROE), and it is able to maintain a 4.5% return on assets(ROA), what will be the new return on equity (ROE) after it..

  What is the expected return on the market

What is the expected return on the market and What is the risk-free rate?

  What is the retained earnings balance at the end of the year

Cindy's Crafts had beginning retained earnings of $51,200. During the year, the company reported sales of $112,400, costs of $75,800, depreciation of $9,100, dividends of $1,500, and interest paid of $2,300. The tax rate is 34 percent. What is the re..

  In this final unit you will synthesize what you have

in this final unit you will synthesize what you have learned about financial and performance management throughout the

  How much interest

Suppose you borrowed $14,000 at a rate of 10.0% and must repay it in five equal instalments at the end of each of the next five years. How much interest would you have to pay in the first year?

  Assume the market interest rate

The operating cost of a new machine is $500 for the first year. Starting the second year, the operating cost increases by $200 per year for the next 10 years. Calculate the equivalent annual operating cost of the machine. What will be the present and..

  Offers an annual interest rate

Henry places the lump sum amount of $475 in a bank savings account today that offers an annual interest rate of 7.95% compounded 12 times per year. How much will Henry have in his account 9 years from today?

  What is the NPV and Find IRR

A firm’s milling machine is old, it is still in relatively good working order and would last for another 10 years. It is inefficient compared to modern standards, though, and so the company is considering replacing it.

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