Use the following information relating to a float-adjusted market-capitalization-weighted equity indexSecurity% of Shares in the MarketFloatABCSharesOutstanding20,00015,0005.11%1.2. 6.22%3. 7.11%41%37%53%Price at the End of 2009($)425420,000Assume that all dividend payments are made at the end of the year.The total return on the index is closest to:27Price at the End of 2010($)385135Dividends per Share($)0.852.151.12

The market-capitalization index is an index where the component stocks are given their weightage…

Use the following information relating to a float-adjusted market-capitalization-weighted Security % of Shares in the Market Float Price at the End of 2009 ($) A B C Shares Outstanding 20,000 15,000 1.5.11% 2. 6.22% 3. 7.11% 41% 37% 53% 42 54 20,000 Assume that all dividend payments are made at the end of the year. The total return on the index is closest to: 27 equity index Price at the End of 2010 ($) 38 51 35 Dividends per Share ($) 0.85 2.15 1.12

Use the following information relating to a float-adjusted market-capitalization-weighted Security % of Shares in the Market Float Price at the End of 2009 ($) A B C Shares Outstanding 20,000 15,000 1.5.11% 2. 6.22% 3. 7.11% 41% 37% 53% 42 54 20,000 Assume that all dividend payments are made at the end of the year. The total return on the index is closest to: 27 equity index Price at the End of 2010 ($) 38 51 35 Dividends per Share ($) 0.85 2.15 1.12

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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Similar questions

Given the following information for the stock of Foster Company, calculate the risk premium on its common stock. Current price per share of common stock $47.02 Expected dividend per share next year $2.46 Constant annual dividend growth rate 5.9% Risk-free rate of return 3.9% The risk premium on Foster stock is ___%
Use the Dividend Discount Model to determine the expected annual growth rate of the dividend for ELO stock. The firm is expected to pay an annual divided of $3.07 per share in one year. ELO shares are currently trading for $27.81 on the NYSE, and the expected annual rate of return for ELO shares is 16.58%. Answer as a % to 2 decimal places (e.g., 12.34% as 12.34). Answer:
A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $59. Required: a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $44. What are the dividend yield and percentage capital gain in this case?
Nikul
A stock is expected to pay a dividend of $1.99 at the end of the year. The required rate of return is rs = 13.82%, and the expected constant growth rate is g = 8.0%. What is the stock's current price?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. A. $39.61 B. $29.71 C. $34.14 D. $42.68 E. $35.51
A share of stock with a beta of 0.68 currently sells for $43. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate is 3%, and the market risk premium is 6%. If the stock is perceived to be fairly priced today, what must be investors' expectation of the price of the stock at the end of the year? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Stock price
Consider the following information on large-company stocks for a period of years. Arithmetic Mean 12.78 3.3 Large-company stocks Inflation a. What was the arithmetic average annual return on large-company stocks in nominal terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the arithmetic average annual return on large-company stocks in real terms? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Nominal return b. Real return 12.70% 10.26 %
RussellCo (RCO) stock has the following forecasted dividend per share stream: $1.14 at the end of years 1 to 10, $1.80 at the end of year 11, after which dividends are expected to grow by 2% per year, forever and ever. Using a required return of 14%, calculate a fair price for RCO's stock today (b) Based on the forecasted dividend stream, calculate what RCO's stock price should be 16 years from today
Use the Constant Dividend Growth Model to determine the expected annual growth rate of the dividend for ELO stock. The firm is expected to pay an annual divided of $8.9 per share in one year. ELO shares are currently trading for $144.48 on the NYSE, and the expected annual rate of return for ELO shares is 12.86%. Answer as a % to 2 decimal places (e.g., 12.34% as 12.34).
None
Given the following information for the stock of Foster Company, calculate the risk premium on its common stock. Current price per share of common stock $37.01 Expected dividend per share next year $1.39 Constant annual dividend growth rate 8.4% Risk-free rate of return 5.2%
A stock currently pays a $3 dividend out of $9 of earnings (EPS). If earnings (EPS) are expected to be $9+1 next year and you expect the company to continue with the same payout policy, what will next year's dividend be?

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