Suppose a stock had an initial price of $69 per share, paid a dividend of $1.95...

Suppose a stock had an initial price of $69 per share, paid a dividend of $1.95 per share during the year, and had an ending share price of $53. Compute the percentage total return, the dividend yield, and the capital gains.
Suppose you bought a stock one year ago for $965.00. The stock sells for $935.00 today. The dividend is $100.
1. a) What was your total dollar return on this investment over the past year?
2. b) What was your total nominal rate of return on this investment over the past year?
3. c) Fisher Effect: If the inflation rate last year was 5 percent, what was your total real rate of return on this investment?
1. You've observed the following returns on Jason Corporation's stock over the past five years: 12 percent, -14 percent, 4 percent, 27 percent, and 7 percent.
  1. a) What was the average return on Jason's stock over this five-year period?
  2. b) What was the variance of Jason's returns over this period? The standard deviation?

Expert Solution

jeff jeffy answered 3 hours ago

Suppose a stock had an initial price of $77 per share, paid a dividend of $1.55...

Suppose a stock had an initial price of $77 per share, paid a dividend of $1.55 per share during the year, and had an ending share price of $83. Compute the percentage total return. Multiple Choice 9.81% 9.10% 10.91% 10.30% 9.31%

Suppose a stock had an initial price of $32 per share, paid a dividend of $2.44...

Suppose a stock had an initial price of $32 per share, paid a dividend of $2.44 per share during the year, and had an ending share price of $29. Compute the percentage total return. Enter the answer in 4 decimals e.g. 0.1234. Calculate the arithmetic average of the following returns. Year Return 1 0.27 2 0.13 3 -0.11 4 -0.09 5 0.08 Enter the answer with 4 decimals, e.g. 0.1234.

Suppose a stock had an initial price of $85 per share, paid a dividend of $1.50...

Suppose a stock had an initial price of $85 per share, paid a dividend of $1.50 per share during the year, and had an ending share price of $99. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage total return % What was the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal...

Suppose a stock had an initial price of $68 per share, paid a dividend of $1.45...

Suppose a stock had an initial price of $68 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $77. Compute the percentage total return.

1. Suppose a stock had an initial price of $67 per share, paid a dividend of...

1. Suppose a stock had an initial price of $67 per share, paid a dividend of $1.55 per share during the year, and had an ending share price of $82. Compute the percentage total return. 2. A stock had returns of 13 percent, 13 percent, 14 percent, -10 percent, 19 percent, and 8 percent over the last six years. a) What is the arithmetic return for the stock? b) What is the geometric return for the stock? 3. Returns Year...

Suppose a stock had an initial price of $82 per share, paid a dividend of $1.20...

Suppose a stock had an initial price of $82 per share, paid a dividend of $1.20 per share during the year, and had an ending share price of $74. Compute the total percentage return. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total return % What was the dividend yield and the capital gains yield? (Do not round...

Suppose a stock had an initial price of $65 per share, paid a dividend of $1.45...

Suppose a stock had an initial price of $65 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $58. a, Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield and the capital gains yield? (A negative answer should be...

1. ) Suppose a stock had an initial price of $37 per share, paid a dividend...

1. ) Suppose a stock had an initial price of $37 per share, paid a dividend of $0.3 per share during the year, and had an ending share price of $50. Compute the percentage total return. Enter the answer in 4 decimals. 2. ) Calculate the arithmetic average of the following returns. Year Return 1 0.18 2 0.08 3 0.11 4 -0.05 5 0.3 Enter the answer with 4 decimals. 3.) Calculate the standard deviation of the following returns. Year...

A company just paid a dividend of $1.95 per share, and that dividend is expected to...

A company just paid a dividend of $1.95 per share, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The company's beta is 1.65, the market risk premium is 8.5%, and the risk-free rate is 6.50%. What is the company's current stock price?

Storico Co. just paid a dividend of $1.95 per share. The company will increase its dividend...

Storico Co. just paid a dividend of $1.95 per share. The company will increase its dividend by 24 percent next year and then reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6 percent dividend growth, after which the company will keep a constant growth rate forever. If the stock price is $40.95, what required return must investors be demanding on the company's stock? (Hint: Set up the valuation formula with...

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