What is your total rate of return on the investment

Assignment Help Financial Management
Reference no: EM131334305

You buy a stock for $35 per share. One year later you receive a dividend of $3.50 per share and sell the stock for $30 per share.

1. What is your total rate of return on this investment?.

2. What is your capital gain or loss yield?.

3. What is your dividend yield?

Reference no: EM131334305

Questions Cloud

What is the companys wacc : Sixx AM Manufacturing has a target debt-equity ratio of 0.65.- If the tax rate is 32 percent, what is the company's WACC?
Risk-free asset and remainder is invested in market : Initially, a portfolio contains 40% invested in Colgate, 40% invested in Apple, and the remainder in Amazon. You calculated the following information: Covariance(Colgate,Market) = 6 Covariance(Apple, Market) = 12 Covariance(Amazon,Market)= 13 Varianc..
Recommending at least six marketing and advertising : Write a two-page reflection paper by recommending at least six marketing and advertising strategies (concepts) and explaining how each strategy would strengthen the brand for an e-commerce site.
Explain the effect of the applied load : Explain how the matrix influences the extent of chemical attack on the fibers. Explain the effect of the applied load.
What is your total rate of return on the investment : What is your total rate of return on this investment?.- What is your capital gain or loss yield?.- What is your dividend yield?
Equation for the security market line : Suppose Finish Line has a beta of 1.3 and an expected return of 10%. The risk-free rate is 1% and the market risk premium is 10%. What is the difference between Finish Line’s expected return and the expected return based on the equation for the secur..
Discuss necessary processes that drive each outcome measure : Create a performance data scorecard you could use to focus on outcome measures in your healthcare organization - Identify at least one outcome measure related to the population indentified
Perspective of a palestinian leader : From the perspective of a Palestinian leader,  in the next round of negotiations with Israel over the issue of statehood for the Palestinians.
What is this stock expected return : You estimate that the market risk premium is 8%, the size premium is 2%, the book-to-market premium is 2%, and the risk free rate is 1.6%. All of these expected returns are APR rates compounded annually. You believe that Whole Foods has a market beta..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the standard deviation of this stock return

You estimate the economy will be really booming next year with 30% probability, and normal with 70% probability. Your analysis of an airline company suggests that the company stock will return 15% if the economy booms, and only 6% if the economy is n..

  Assume interest rates for bonds

Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer. What other f..

  Create excitement about the launch of a new product

One common use of product placement is to help create excitement about the launch of a new product. Implicit celebrity endorsements and authenticity are key issues to consider when judging placement opportunities.

  Dollar growth-how was the growth financed

Middleton Clinic had total assets of $500,000 and an equity balance of $350,000 at the end of 2010. One year later, at the end of 2011, the clinic had $575,000 in assets and $380,000 in equity. What was the clinic’s dollar growth in assets during 201..

  What is the yield to maturity of a zero coupon bond

What is the yield to maturity (YTM) of a zero coupon bond with a face value of $1,000, current price of $730 and maturity of 7 years? Recall that the compounding interval is 6 months and the YTM, like all interest rates, is reported on an annualized ..

  Dividend is expected to grow-what is estimated stock price

Stock ABC just paid a $1 dividend yesterday. The dividend is expected to grow at a rate of 25% for the next 3 years when the required return is 15%. After that, from year 4 and thereafter (forever), the expected dividend growth rate will be 5% and th..

  What were the historical average rates of return

What were the historical average rates of return? - What were the historical market betas? - What were the historical market betas, adjusted toward 1 by averaging with 1?

  Compute the materials price variance

Prepare a schedule of cash collections for May through July and compute the materials price variance and the materials quantity variance.

  What would be an appropriate estimate of the stock price

A company is expected to pay a dividend of $1.37 per share one year from now and $1.84 in two years. You estimate the risk-free rate to be 4.2% per year and the expected market risk premium to be 5.9% per year. Analysts expect the price of the stock ..

  Trade-off between retaining internally generated funds

The CFO of your company (BD-Becton Dickinson and Company) states that the composite cost of capital is saucer-shaped or U-shaped. Explain what this means. Explain the trade-off between retaining internally generated funds and paying the cash dividend..

  What is the most you should pay for the annuity

You have a chance to buy an annuity that pays $2.500 at the end of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

  What is the companys current stock price

Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the required return on the market is 10.50%, and the risk-fre..

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