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Dividend Yields, Capital Gains, Bonds and Coupon Rates

9. Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's dividend yield?
3.00%
4.00%
7.00%
10.00%
11.00%

10.Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's capital gain rate?
3.00%
4.00%
7.00%
10.00%
11.00%

11. Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's total expected return?
3%
4%
7%
10%
11%
15. You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your simple annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond?
$1,122.87
$1,003.42
$875.38
$950.75
$1,124.63

16. You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid each 6 months. If you expect to earn a 10 percent simple rate of return on this bond, how much did you pay for it?
$812.15
$1,003.42
$875.38
$950.75
$1,124.63

Solution Summary

This solution explains how to calculate dividend yield, capital gain rate, total expected return, and bond prices.

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