A stock had an initial price of GH¢5,000 per share, paid a dividend of GH¢1,000 per share at the end of the year and had an ending share price of GH¢3,500. What is (a) the dividend yield (b) the capital gain (%) (c) total return on the stock

A stock had an initial price of GH¢5,000 per share, paid a dividend of GH¢1,000 per share at the end of the year and had an ending share price of GH¢3,500. What is (a) the dividend yield (b) the capital gain (%) (c) total return on the stock

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

See similar textbooks

Related questions

Q: Suppose a stock had an initial price of $168 per share, paid a dividend of $2 per share during the…

A: To calculate the percentage total return we will use the below formula Percentage total return =…

Q: Suppose a stock had an initial price of $96 per share, paid a dividend of $2.30 per share during the…

A: The objective of the question is to calculate the percentage total return on a stock. The total…

Q: Suppose a stock had an initial price of $98 per share, paid a dividend of $3.20 per share during the…

A: Initial price (P0) = $98Dividend (D) = $3.20Ending price (P1) = $106

Q: Suppose a stock had an initial price of $109 per share, paid a dividend of $2.70 per share during…

A: a. Percentage total return = [(Ending share price - Initial price) + Dividend] / Initial price…

Q: Find the dividend yield for a stock that pays an annual dividend of $1.28 per share and has a…

A: Dividend Yield = Annual Dividend / Current Price

Q: Calculate the value of common stock given: Expected Dividend Year 1 (D1) is $20; Capitalization Rate…

A: As per Gordons growth model, P = D1 / (Ke-g) P = stock price D1 = value of next…

Q: Suppose a stock had an initial price of $47 per share, paid a dividend of $0.63 per share during the…

A: Initial price (P0) = $47Dividend (D) = $0.63Ending price (P1) = $38

Q: Opose a stock had an initial price of $74 per share, paid à dividend $1.65 share during the year,…

A: Rate of return is the profit earned above the investment and it is the sum of dividend yield and…

Q: Suppose a stock had an initial price of $91 per share, paid a dividend of $1.80 per share during the…

A: Initial price (P0) = $91 Dividend (D) = $1.80 Ending price (P1) = $108

Q: 1. Calculating Returns Suppose a stock had an initial price of $87 per share, paid a dividend of…

A: percentage total return=(End value-Beginning value+Dividend)/Beginning value

Q: Suppose a stock had an initial price of $35.19 per share, paid a dividend of $2.26 per share during…

A: Given information in question Current price =$35.19 Dividend paid=$2.26 Ending price=$33.6

Q: Suppose a stock had an initial price of $72 per share, paid a dividend of $2.60 per share during the…

A: Dividend Yield:Dividend yield is a financial ratio that indicates the annual dividend income…

Q: Suppose a stock had an initial price of $44 per share, paid a dividend of $5 per share during the…

A: To calculate the percentage total return we will use the below formula Percentage total return =…

Q: Calculating Returns: Suppose a stock had an initial price of $76 per share, paid a dividend of $1.95…

A: Total return is the percentage of income earned by investing in a particular stock.…

Q: a stock had an initial price of ¢5000,paid a dividend of gh¢1000 per share at the end of the year…

A: Given Initial Price = 5000 Dividend = 1000 ending price = 3500

Q: A stock is bought for $21.00 and sold for $26.00 one year later, immediately after it has paid a…

A: Introduction Capital Gain Transaction: It can be coined as an appreciation of the value of the…

Q: A stock is bought for $25.84 and sold for $26.44 a year later, immediately after it has paid a…

A: Capital Gain rate for the transaction is the sale price less the cost of acquisition and other…

Q: B. Investor A spent P 250,000.00 for 250 shares on July 2015. He received a per share dividend…

A: We need to compute dividend yield, capital gains and return on the investment.

Q: What is earning per share? What is price- earning patio? what is dividends per share ?What is…

A: Earnings per share (EPS) refers to the profit per outstanding share of tock of a public company,…

Q: Assuming that 163,000 will be distributed as a dividend in the current year, how much will the…

A: Preferred Stock Holders: These are holders of preferred stock and have priority of the firm's…

Q: You find a stock selling for $91.26 that has a dividend yield of 1.6 percent and a PE ratio of 12.0.…

A: Dividend is that sum of money which a company pays out on a regular basis to its shareholders. A…

Q: Digital Timber International (DTI) is a developer of distributed data storage technologies. The…

A: Select financials have been provided for a stock. We have to calculate various per share data. You…

Q: Suppose a stock had an initial price of $50 per share, paid a dividend of $.80 per share during the…

A: Return from stock can be determined by using the difference between the ending price and the initial…

Q: North Side Corp’s dividends for year 1, year 2, year 3, and expected share price for year 3 are:…

A: Current price of share is referred as the most recent selling price of a stock which is traded on an…

Q: You purchased a stock at a price of $48.01. The stock paid a dividend of $1.87 per share and the…

A: Dividend yield of the stock is calculated as Dividend yield = Dividend paid during the yearStock…

Q: You purchased a stock at a price of $46.55. The stock paid a dividend of $1.79 per share and the…

A: Here, Purchase Price of Stock is $46.55 Price after 1 year is $52.45 Dividend Paid is $1.79

Q: Suppose a stock had an initial price of $82 per share, paid a dividend of $1.20 per share during the…

A: Calculation of Dividend Yield and Capital Gains Yield:The dividend yield is 1.46% and capital gains…

Q: A company has a reported net income of RM12 million and 60 million shares outstanding. a) Estimate…

A: Net income = RM 12,000,000 Number of shares = RM 60,000,000 P/E Ratio = 14.0

Q: You purchased a stock at a price of $57.04. The stock paid a dividend of $2.31 per share and the…

A: Capital gains yield equals the entire return in the lack of any cash flow from the investment. It…

Q: 2. A certain company gave out P 25 dividend per share for its common stock. The market value of the…

A: The ratio is used to measure the performance of the business entity. It helps management in…

Q: A company has issued preferred shares with a dividend of $0.97. The current price per share is…

A: Preferred Shares are the hybrid security that has features of bonds as fixed preferred dividend and…

Q: Given the information of a stock:  ROE (return on equity) is 10%  Capitalisation rate…

A: ROE = 10% Reinvestment rate = 40% Required Rate of return = 8% EPS = 10 Dividend per share at end of…

Q: A stock is bought for $23.00 and sold for $28.00 one year later, immediately after it has paid a…

A: A capital gain is the profit realised through the sale of an asset, including such stocks, bonds, or…

Q: What is the dividend yield if the annual dividend per share is $7.50 and the market price of a share…

A: The dividend yield refers to the amount that the investor earns on an annual basis for an investment…

Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
a stock had an initial price of ¢5000,paid a dividend of gh¢1000 per share at the end of the year and had an ending share price of gh¢3500. what is the total return of stock , the dividend yield and the capital gain
Suppose a stock had an initial price of $86 per share, paid a dividend of $1.70 per share during the year, and had an ending share price of $12.50. Compute the percentage total return. What was the dividend yield? What was the capital gains yield?
Suppose a stock had an initial price of $98 per share, paid a dividend of $3.20 per share during the year, and had an ending share price of $106.What was the dividend yield?
Suppose a stock had an initial price of $47 per share, paid a dividend of $0.63 per share during the year, and had an ending share price of $38. What was the capital gains yield? O-19.15 percent -23.68 percent 20.31 percent 17.39 percent -18.53 percent
Calculating Returns: Suppose a stock had an initial priceof $76 per share, paid a dividend of $1.95 per share duringthe year, and had an ending share price of $68. Compute thepercentage total return. What was the dividendyield? The capital gains yield?
BASIC (Questions 1-18) 1. Calculating Returns Suppose a stock had an initial price of $87 per share, paid a dividend of $2.15 per share during the year, and had an ending share price of $98. Compute the percentage total return. What was the dividend yield? The capital gains yield? LO 1
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 $90. What was the dividend yield and the capital gains yield? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Dividend yield % Capital gains yield %
Suppose a stock had an initial price of $168 per share, paid a dividend of $2 per share during the year, and had an ending share price of $154. Compute the percentage return.
Consider the followingSuppose a stock had an initial price of $74 per share, paid a dividend of $1.65 per share during the year, and had an ending share price of $83. Compute the percentage total return. Input area: Initial price Dividend paid Ending share price (Use cells A6 to B8 from the given information to complete this question.) Output area: $74 $1.65 $83 Total return
(a) Compute the expected book value per share at time 1. (b) Compute the expected earnings per share of DTI at time 2. (c) Compute the expected value of the ex-dividend stock price at time 2. (d) Compute the expected value of the ex-dividend stock price at time 0. (e) Compute the expected return (over a single-period) on the stock of DTI at time 0 (in %).
A stock is bought for $25.84 and sold for $26.44 a year later, immediately after it has paid a dividend of $4.59. What is the capital gain rate for this transaction?