Purchase Solution

# Stock return/current price

Not what you're looking for?

Question 1
Stacy purchased a stock last year and sold it today for \$3 a share more than her purchase price. She received a total of \$0.75 in dividends. Which one of the following statements is correct in relation to this investment?

A. The dividend yield is expressed as a percentage of the selling price.
B. The capital gain would have been less had Stacy not received the dividends.
C. The total dollar return per share is \$3.
D. The capital gains yield is positive.
E. The dividend yield is greater than the capital gains yield.

Question 2
Far Side Corporation is expected to pay the following dividends over the next four years: \$11, \$8, \$5, and \$2. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 12 percent, the current share price is \$_____

##### Solution Summary

The solution explains two questions relating to stock return and current price of stock

##### Solution Preview

1. A. The dividend yield is expressed as a percentage of the selling price.

This is not correct as dividend yield is calculated as D1/P0 that as a percentage of buy price

B. The capital gain would have been less had Stacy not received the dividends.

Capital gains yield depends on change in price and not on ...

##### MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

##### Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

##### Operations Management

This quiz tests a student's knowledge about Operations Management

##### Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.