What will be the apr and dollar amount of your capital gain

Assignment Help Financial Management
Reference no: EM131891930

You have bought a stock today and your required rate of return is 10%. A dividend of $2 per share will be paid in the coming year and it is expected to increase at an annual rate of 4% every year. What is the stock dividend yield now? What will be the APR and dollar amount of your capital gain if you sell the stock out three year from now?

Reference no: EM131891930

Questions Cloud

Create a modular design diagram and proposal summary : To continue the network design to support the growth and expansion plan of West Consulting, you will create a modular design diagram and proposal summary.
Discuss the primary styles of leadership : Identify and discuss the three primary styles of leadership used in family decision making. Which style is most prominent in your family and how effective.
Thermodynamic equilibrium constant : For the reaction below, the thermodynamic equilibrium constant is K = 0.00192 at 35 °C.
Discuss cost management as a profession : Where in the corporate, not for profit, areas would cost accountants work and what types of work would they do?
What will be the apr and dollar amount of your capital gain : What will be the APR and dollar amount of your capital gain if you sell the stock out three year from now?
Find the concentration of fescn : How do you find the concentration of FeSCN 2+ if you are only given the absorbance?
Describe three of the most interesting experiences : Describe three of the most interesting experiences you have had while completing your studies in the BA in Psychology program here at APUS and explain.
Explain the advantages of the flexible exchange rate regime : Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime.
Grid and connecting with bonds : Draw the molecule by placing atoms on the grid and connecting them with bonds. Include all lone pairs of electrons.

Reviews

Write a Review

Financial Management Questions & Answers

  Investment in option to be profitable as investment in stock

The price of a stock is $36 and the price of a three-month call option on the stock with a $36 strike is $3.60. Suppose a trader has $3,600 to invest and is trying to choose between buying 1,000 options (10 contracts) or 100 shares of stock. How high..

  Which of the two machines to install to reduce costs

A firm is considering which of the two machines to install to reduce costs.

  What would be the cost of equity from new stock

Javits and Son’s common stock currently trades at $30.00 a share. It is expected to pay an annual dividend of $3.00 per share at the end of the year (D1= $3.00), and the constant growth is 5% a year. (A) What is the company’s cost of common equity if..

  Whats wrong with using payback period

How can options sell for more than their exercise value and whats wrong with using payback period? What should we use instead? Why?

  Corporation issues a debt instruments

A corporation issues a debt instruments such as a bond that promises to pay you annually $60 for three years and $1,000 after three years. What is the maximum amount you would pay for this debt instrument if you wanted to ear 8%.

  Regress the stocks past returns against the risk-free rate

One way to calculate a stock's beta is to- calculate the stock's coefficient of variation. calculate both the stock's mean return and the std.dev. of the returns. regress the stock's past returns against the risk-free rate.

  Growth rate falling off to constant eight percent thereafter

Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 8 percent thereafter.

  Compute the mean drying time

The drying rate in an industrial process is dependent on many factors and varies according to the following distribution. What is the average drying time for the 12 processes you simulated? Compute the mean drying time

  These are the only two assets funding the plan

how much of its portfolio should it allocate to one-year zero-coupon bonds and perpetuities, respectively, if these are the only two assets funding the plan?

  What is the cost of common stock for whitewall

what is the cost of common stock for Whitewall?

  Discuss the key features of not-for-profit

Discuss the key features of Not-for-Profit (NFP) Organizations. Why NFP organizations should be concerned about financial management? Should NFP organizations make a "profit"? How can financial information be used to help managers make decisions?

  Mutual fund and what is the expected return

Assume that you manage a mutual fund with an expected rate of return of 18% and a standard deviation of 34%. The T-bill rate is 5.5%. An investor wants to invest in your fund and T-bills such that the standard deviation of the investor’s total portfo..

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