Purchase Solution

National Telephone and Telegraph (NTT): Percentage holding

Not what you're looking for?

Ask Custom Question

National Telephone and Telegraph (NTT) company's common stock currently sell for $60 per share. NTT is expected to pay a $4 dividend during the coming year and the price of stock is expected to increase to $65 a year from now.

A. Determine the expected (ex-ante) percentage holding period return on NTT common stock.

B. 1 year later NTT's common stock selling for $75 per share during 1 year period, NTT paid $4 common stock dividend, Determine the realized (ex-Post) percentage holding period return on NTT common stock.

C. Repeat (b) given that NTT's common stock is selling for $58, 1 year later

D. Repaet (b) given that NTT's common stock is selling for $50 1 year later.

Purchase this Solution
Solution Summary

This post explains the concepts of holding peiod return and pricing of stocks.

Solution Preview

a) Expected percentage holding period return = (P1-P0+D1)/P0 = (65-60+4)/60=15%

b) Realized ...

Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

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

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Percentage Holding Return

    Determine the percentage holding period return on this investment. 5. a. National Telephone and Telegraph (NTT) Company common stock currently sells for $60 per share.

  • Holding period return

    205683 Holding period return problem Suppose a Midwest Telephone and Telegraph (MTT) Company bond, maturing in 1 year, can be purchased today for $975.

  • Bond Yields

    American Telephone & Telegraph has issued 81/8 percent debentures that will mature on July 15, 2024. Assume that interest is paid and compounded annually.

  • Developments in telecommunications

    The telegraph is typically cited as the first main means of communication that was a success. We then progressed to the telephone, invented by Bell and Watson.

  • Innovation and Adaptation of Products

    We went from the telegraph to other forms of communication that were more advanced, like the telephone. As we continued to progress, to invent, and to innovate, we realized that more advanced forms of communication were possible. 2.

  • Historical Scope of Telecommunications

    This covers many technologies including radio, telegraphy, television, telephone, data communication and computer networking.

  • Mobile Computing

    Six companies, British Telecom, NTT, Rogers Wireless, Brasil Telecom, Korea Telecom and Swisscom have formed the Fixed-Mobile Convergence Alliance with the purpose to encourage the seamless integration of mobile and fixed-line telephone services.

  • Social Impacts of Technology: Historic/current impact of computers

    As soon as the telegraph was created people tried to think of ways that they could improve communication. From the telegraph you get the telephone. From the telephone you eventually get to internet and Facebook and Twitter.

  • NTT Docomo Pioneers the Cell-Phone Wallet in Japan

    NTT Docomo Pioneers the Cell-Phone Wallet in Japan In a country where cash is king and almost everyone owns a cell phone, Japan's NTT Docomo led a major drive into mobile e-commerce, or m-commerce.

View More Related Solutions