Black Paua Inc. announced on May 1 that it will pay a dividend of $5 per share on June 15 to all holders on record as of May 31st. The firm's stock price closed today at $50 a share. Assume allinvestors are in the 28 percent tax bracket. If tomorrow is the ex-dividend date, what would you expect the opening price to be tomorrow morning assuming all else is held constant?$42.80$45$46.40$44.96

Dividend: It represents a portion of profits or earnings of the company that is paid to the…

er share on June 15 to all holders on record as of May 31st. The firm's stock price closed today at $50 a share. Assur nd date, what would you expect the opening price to be tomorrow morning assuming all else is held constant?

er share on June 15 to all holders on record as of May 31st. The firm's stock price closed today at $50 a share. Assur nd date, what would you expect the opening price to be tomorrow morning assuming all else is held constant?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $38; (ii) $40; (iii) $44? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.) Stock Price Rate of Return 38 40 % 44 %
Use the given stock table to find the closing price for ABC Technologies (ABC). 52-Week Div Yld Vol 100s Close SYM Amt % PE ABC 2.16 3.5 17 5915 62.07 High 75.67 Low Stock 39.43 ABCTch The closing price was $ Net Chg 1.45
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Return on Common Stock You buy a share of The Ludwig Corporation stock for $18.40. You expect it to pay dividends of $1.08, $1.1491, and $1.2226 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $22.16 at the end of 3 years. a. Calculate the growth rate in dividends. Round your answer to two decimal places. % b. Calculate the expected dividend yield. Round your answer to two decimal places. % c. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return? (Assume the market is in equilibrium with the required return equal to the expected return.) Do not round intermediate calculations. Round your answer to two decimal places. %
The following table contains prices and dividends for a stock. All prices are after the dividend has been paid. If you bought the stock on January 1 and sold it on December 31, what is your realized return? Hint: Make sure to round all intermediate calculations to at least five decimal places. (Click on the following icon in order to copy its contents into a spreadsheet.) Jan 1 Mar 31 Jun 30 Sep 30 Dec 31 Price 10.09 11.09 10.59 11.19 11.09 Dividend 0.16 0.16 0.16 0.16 Your realized return is%. (Round to one decimal place.)
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You purchased 200 shares of preferred stock on January 1 for $14.36 per share. The stock pays an annual dividend of $1.26 per share. On December 31, the market price is $16.69 per share. What is your percent return for the year if you hold on to the stock? The correct answer is 25%. How was that found? Please do not answer in Excel format
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You found the following stock quote for DRK Enterprises, Inc., at your favorite website. You also found that the stock paid an annual dividend of $.93, which resulted in a dividend yield of 1.2 percent. YTD Company DRK Enterprises Symbol DRK DAILY Vol Close Chg 18,649,130 ?? 26 %Chg 0.36% %Chg 8.73% a. What was the closing price for this stock yesterday? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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