Liam owns 1 share of stock A and 1 share of stock B.  In 1 year from today, the total value of his holdings is expected to be 136.89 dollars.  Stock A is currently priced at 89.03 dollars, has an expected return of 15.58 percent, and is expected to pay a dividend of 4.17 dollars in 1 year from today.  Stock B has an expected return of 12.02 percent and is expected to pay a dividend of 6.78 dollars in 1 year from today.  What is the price of stock B today?

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A: Expected return = 15% Price of share = $20 Dividend paid = $1

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Q: Given the help with question

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A: The question can be solved as follows:

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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.