Provide answer this accounting question Alpha Minerals will pay an annual dividend of $2.20 per sharenext year and currently sells for $50 a share based on a marketrate of return of 10.92 percent. What is the capital gains yield?A. 7.35 percentB. 7.78 percentC. 9.23 percentD. 6.52 percentE. 4.49 percent

Step 1:- Introduction to the Capital GainCapital gain refers to an increase in the value of an…

Answered: Alpha Minerals will pay an annual…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 3P

See similar textbooks

Similar questions

What is the capital gains yield on these financial accounting question?
Kindly help me with accounting questions
Financial Accounting
Please give me true answer this financial accounting question
None
Credenza Industries is expected to pay a dividend of $1.55 at the end of the coming year. It is expected to sell for $68 at the end of the year. If its equity cost of capital is 10%, what is the expected capital gain from the sale of this stock at the end of the coming year? OA. $63.23 OB. $4.77 O.C. $61.82 OD. $6.18
Credenza Industries is expected to pay a dividend of $1.50 at the end of the coming year. It is expected to sell for $61 at the end of the year. If its equity cost of capital is 9%, what is the expected capital gain from the sale of this stock at the end of the coming year? .... O A. $57.34 O B. $5.04 OC. $55.96 O D. $3.66 ..
The co. recently paid a $2.80 annual dividend (Do). This dividend increases at the rate of 3.8%/year. The stock price = $26.91 / share. What is the market rate of return? A. 13.88%B. 14.03 %C. 14.21 %D. 14.60 %
LaserAce IS selling at $22.00 per share The most recent annualdividend paid Was $0.80 Using the Gordon Growth model, If themarket requires retum of 1 1%, What is the expected dividendgrowth rate for LaserAcer?A.10.5%B. 5.10%C.1.7%D.7.1%
NTT Corp is expected to pay a $2.80 annual dividend to its common shareholders next year. Analysts expect these dividends to grow indefinitely at a 6.5 percent annual rate. If the required rate of return on the common stock is 10.8 percent, what is the intrinsic value of the common stock? a. $56.28 b. $61.44 c. $65.12 d. $69.35
Your investment over one year yielded a capital gains yield of 7% and no dividend yield. If the sale price was $118 per share, what was the cost of the investment? OA. $104.77 O B. $115.79 OC. $121.31 O D. $110.28
10. Consider the following price and dividend data for Quicksilver Inc.: Year Price (£) Dividend (£) 0 10 1 0.14 2 0.14 3 14 0.14 Assume that you purchased Quicksilver's share in year 0 and sold it at the end of year 3. Your annual rate of return for holding this share is closest to ________. A. 8% B. 14% C. 20% D. 19%

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

SEE MORE TEXTBOOKS

Alpha Minerals will pay an annual dividend of $2.20 per share next year and currently sells for $50 a share based on a market rate of return of 10.92 percent. What is the capital gains yield? A. 7.35 percent B. 7.78 percent C. 9.23 percent D. 6.52 percent E. 4.49 percent