Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. (Click on the following icon in order to copy its contents into a spreadsheet.) Return for the entire period is%. (Round to two decimal places.) Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $34.04 $29.92 $29.91 $31.26 $38.38 $41.03 Dividend - $0.19 $0.18 $0.18 $0.18

Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. (Click on the following icon in order to copy its contents into a spreadsheet.) Return for the entire period is%. (Round to two decimal places.) Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $34.04 $29.92 $29.91 $31.26 $38.38 $41.03 Dividend - $0.19 $0.18 $0.18 $0.18

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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Return on Common Stock You buy a share of The Ludwig Corporation stock for $18.50. You expect it to pay dividends of $1.00, $1.0510, and $1.1046 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $21.48 at the end of 3 years. Calculate the growth rate in dividends. Round your answer to two decimal places. % Calculate the expected dividend yield. Round your answer to two decimal places. % 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 market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places. %
A stock has had the following year-end prices and dividends: Year 1234 in 10 5 6 Price $64.68 71.55 77.35 63.62 73.81 83.25 Dividend Arithmetic average return. Geometric average return $.67 .72 .78 .87 .94 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.. 32.16. % %
You've collected the following information from your favorite financial website. 52-Week Price Div PE Close Net Hi Lo Yld % Ratio Price Chg Stock (Div) Palm Coal .36 77.40 10.43 2.6 6 13.90 -.24 Lake Lead Grp 55.81 33.42 3.8 10 40.43 -.01 130.94 69.55 SIR 2.05 2.3 10 88.98 3.07 50.24 13.95 DR Dime .80 5.2 6 15.43 -.26 35.00 20.74 Candy Galore .32 1.5 28 ?? .18 According to your research, the growth rate in dividends for SIR for the next five years is expected to be 20 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.25 percent indefinitely. Assume investors require a return of 12 percent on SIR stock. According to the dividend growth model, what should the stock price be today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) X Answer is complete but not entirely correct. Current stock price $ 21.33 X 1.54
You've collected the following information from your favorite financial website. 52-Week Price Dividend Hi Lo Stock (Dividend) Yield % PE Ratio Close Price Net Change 77.40 10.43 Acevedo .36 2.6 6 13.90 -.24 55.96 33.57 Georgette, Incorporated 1.69 4.2 10 40.58 -.01 130.93 69.50 YBM 2.00 2.2 10 88.97 3.07 50.24 35.00 13.95 Manta Energy .80 5.2 15.43 -.26 20.74 winter sports .32 1.5 28 ?? .18 Find the quote for the Georgette, Incorporated. Assume that the dividend is constant. a. What was the highest dividend yield over the past year? 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 lowest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Highest dividend yield b. Lowest dividend yield -7.54% 3.96 %
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.)
A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 65.13 — 2 72.00 $ .76 3 77.80 .81 4 64.07 .87 5 74.71 .96 6 87.75 1.03 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Using the data in the following table, immediately. 9 calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock The realized return from January 2, 2008, to January 2, 2009 is Data table %. (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Dividend Historical Stock and Dividend Data for Boeing Date 1/3/2011 2/9/2011 5/11/2011 8/10/2011 11/8/2011 1/3/2012 Date 1/2/2008 2/6/2008 5/7/2008 8/6/2008 11/5/2008 1/2/2009 Price $87.75 $79.76 $85.01 $66.77 $47.75 $44.02 $0.37 $0.37 $0.37 $0.00 Print Done Price $67.58 $70.28 $80.89 $56.25 $64.88 $74.91 Dividend $0.41 $0.41 $0.41 $0.41 I X
You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo 36 33.42 Georgette, Incorporated 1,54 69.50 YBH 2.00 14.09 Manta Energy .94 20.74 Winter Sports 32 Hi 77.40 55.81 130.93 50,38 35.00 Stock (Dividends Required retum Dividend Yield PE Ratio Close Price liet Change .24 2.6 3.0 2.2 6.0 4.5 6 10 10 60 13.90 40.43 68.97 15.57 22 -.01 3.07 .26 .18 According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 14 percent. If Investors feel this growth rate will continue, what is the required return for the stock? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as o percent rounded to 2 decimal places, e.g., 32.16.
The following table shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. Company Johnson Controls Medtronic Direct TV Qualcomm Portfolio Return Shares 450 300 Dollar return Percentage return 600 200 What is your portfolio dollar return and percentage return? Note: Round your answers to 2 decimal places. Beginning of Year Price $ 73.01 57.67 25.04 43.18 % Dividend Per Share $ 1.19 .43 .40 End of Year Price $85.97 53.61 24.49 39.02

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