Here are data on two stocks, both of which have discount rates of 15%:                            Stock A       Stock B Return on equity 15%          12% Earnings per share $ 3.50    $ 2.40 Dividends per share$ 0.70    $ 0.70   Please see attached questions

Q: ou are given the following information concerning two stocks that make up an index. Assume the…

A: A statistical metric called an index is employed to depict the performance of a market or a…

Q: Suppose a stock had an initial price of $57 per share, paid a dividend of $1.00 per share during the…

A: To calculate the percentage return we will use the below formula   Percentage 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: A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.27 23456 2…

A: Returns refer to the income earned by the investor through an investment in a particular holding…

Q: What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a…

A: Nominal Rate of Return on a Perpetual Preferred Stock    A perpetual preferred stock is a type of…

Q: 0000 What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a…

A: Preferred stock is an example of a zero-growth stock because the dividend on preferred stock is…

Q: PREFERRED STOCK RATE OF RETURN What will be the nominal rate of return on a per- petual preferred…

A: Nominal rate of return = Dividend / Current market price Where, Dividend = Par Value * Dividend Rate…

Q: Given the following information concerning three stocks, Stock Price Shares Outstanding A $10…

A: We are given the following data -Stock PriceShares OutstandingA$101,000,000 B$143,000,000…

Q: Calculate the value of preferred stock given: Dividend Payment (D) is $10 and Capitalization Rate…

A: Value of Preferred stock = Dividend payment / Capitalisation Rate

Q: Valuation of Preferred Stock Beart Inc. issued preferred stock with a par value of $100 and an…

A: Giventhe par value of stock is $100the annual dividend rate is 8%.

Q: A journal entry for the sale of $5-par common stock for $15 per share would include a debit to Cash.…

A: In most of the cases, sale of common stock gives cash in return. This increases the cash balance of…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend $ 1 43.45 23456…

A: The arithmetic return is the most basic form of average: add the numbers together and divide them by…

Q: A stock has had the following year-end prices and dividends: Year 1 Price $64.68 2 3 71.55 77.35…

A: Calculation of arithmetic and geometric mean:Excel working with formula:

Q: Assume the following information concerning two stocks that make up an index. What is the…

A: A portfolio's return % serves as a gauge for the overall performance of the portfolio over a certain…

Q: Using the data in the following table, calculate the return for investing in the stock from January…

A: Return on investment measures an investment's efficiency and profitability. It shows the ratio of an…

Q: Suppose a stock had an initial price of $36.71 per share, paid a dividend of $2.23 per share during…

A: Initial price (P0) = $36.71Final Price (P1) = $32.76Dividend (D) = $2.23We need to calculate the…

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: Using the data in the following table, estimate the average return and volatility for each stock.…

A: Step 1: Calculate the average return for each stock. For the average return, we must add all of the…

Q: A stock has had the following year-end prices and dividends: Year Price $65.03 123456 71.90 77.70…

A: Here,

Q: A stock has had the following year-end prices and dividends: Year 6723456 1 Price $ 65.08 Dividend…

A: The arithmetic average return is the simple average of all returns. The geometric rate of return is…

Q: What is the profit/loss for stock from the following information?  Stock price jan- 102.03 Stock…

A: Option is the derivative instrument used by investors. It gives the right to an investor not an…

Q: Suppose a stock had an initial price of $64 per share, paid a dividend of $1.40 per share during the…

A: Percentage of return = Total return / Initial price of shares

Q: Suppose a stock had an initial price of $76 per share, paid a dividend of $1.85 per share during the…

A: Percentage Total Return is calculated by following formula:-Percentage Total Return =

Q: Using the stock table for Dell Technologies below, calculate the earnings per share. Round your…

A: EPS can be calculated from given P/E ratio  we know that,  P/E ratio (Price earnings ratio) = Share…

Q: Cost of preferred stock Determine the cost for the following preferred stock. (Click on the icon…

A: COST OF EQUITY Cost of Capital is the minimum rate of return that must be earned on investments, in…

Q: Assume the following information concerning two stocks that make up an index. What is the…

A: Here,Price of KI in beginning is $72Price of PC in beginning is $113Price of KI in ending is…

Q: Assume a stock has earnings per share (EPS0) of £ 34.10 and a dividend pay-out ratio of53.3%. The…

A: EPS0 = 34.10 Dividend for year 0 = 34.10*payout ratio = 34.10*53.3% =18.1753 Growth Rate =10%…

Q: Assume the following information concerning two stocks that make up an index. What is the…

A: Part 2: ExplanationStep 1: Calculate the beginning market value of each stock.Kirk, Incorporated:…

Q: Suppose a stock had an initial price of $34 per share, paid a dividend of $1.18 per share during the…

A: Stocks are issued by corporate entities to raise funds to finance their business operations. Stocks…

Q: share (EPS) are $ 4.25 and similar shares of stock sell at multiples (P/E) of 35.69 times earnings…

A: The Price earning ratio is calculated by dividing the value per share of the company by its earnings…

Q: Calculate the yield of the following stock. (Round your answer to the nearest tenth percent.)…

A: Yield of the stock refers to the return earned on the stock during an accounting year. The return…

Q: A stock has had the following year-end prices and dividends: Year 1 Price Dividend $ 43.41 2 48.39…

A: Step 1: Calculate the Holding Period Returns (HPR) for Each YearTo find the returns for each year,…

Q: Name Alphabet Symbol GOOL Close $959.22 Day Range $960.35-$965.90 52-Week Range $672.66-$965.90…

A: Earnings per share refers to the amount of profit attributable to each shareholder of the company.

Q: The following table displays hypothetical stock quotations. Use the information in the table to…

A: Variables in the question:CompanyTickerHighLowLast Price*Net Change**YTD %***Div. YieldP/E…

Q: in the following stock quote to answer the question: As of February 1, 2XX1 Name Symbol Open…

A: Given, Closing price = 87.05 PE ratio = 16.76

Q: A stock has had the following year-end prices and dividends: Price $ 64.63 71.50 77.30 63.57 73.71…

A: Rate of Return = (Ending Price + Dividend - Beginning Price) / Beginning PriceArithmetic Average…

Q: Suppose a stock had an initial price of $60 per share, paid a dividend of $.60 per share during the…

A: Initial share price = $60Dividend  = $0.60Ending share price = $72

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.