What is my dividend yield ratio when my market price is 8.87 and my annual price is 5.00?
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- Where does the -$40 dividend payment come from?Let a discrete dividend with the dividend yield dy be paid out on the underlying S at time ta. (i) Formulate the jump condition for the underlying price S at time ta and explain carefully the meaning of all parameters and variables you use in the jump condition. (ii) Consider the dividend yield dy = 0.2. The value of S immediately after the dividend payment is S = £10.00. What is the value of S immediately before the dividend payment?The required return on a stock is equal to which one of the following if the dividend on the stock decreases by a constant percent per year? O Dividend yield - Capital gains yield O (PO/D1) - g O (D1/PO)/g Dividend yield x Capital gains yield O Dividend yield + Capital gains yield
- n the formula ke >= (D1/P0) + g, what does (D1/P0) represent? Select one: a. The expected capital gains yield from a common stock b. The interest payment from a bond c. The expected dividend yield from a common stock d. The dividend yield from a preferred stockThe sum of the expected dividend and the expected capital gains yield is called a. Required rate of return b. expected total return c. expected rate of return d. value of the stock e. realized rate of return(Computing rates of return) From the following price data, compute the annual rates of return for Asman and Salinas. Asman Salinas $10 $30 12 28 11 32 13 35 Time 1234 3 4 How would you interpret the meaning of the annual rates of retur? The rate of return you would have eamed on Asman stock from time 1 to time 2 is%. (Round to two decimal places.) The rate of return you would have earned on Asman stock from time 2 to time 3 is%. (Round to two decimal places.) The rate of return you would have eamed on Asman stock from time 3 to time 4 is%. (Round to two decimal places.) The rate of return you would have earned on Salinas stock from time 1 to time 2 is%. (Round to two decimal places.) The rate of return you would have earned on Salinas stock from time 2 to time 3 is %. (Round to two decimal places.) The rate of return you would have earned on Salinas stock from time 3 to time 4 is %. (Round to two decimal places.)
- Current yield is equal to What? a.Market yield b.Any of these c.Income yield d.Running YieldWhich of the following best describes the constant-growth dividend discount model? Select one: a. It is the formula for the present value of a growing annuity b. It is the formula for the present value of a growing annuity c. It is the formula for the present value of a growing perpetuitySuppose rRF = 4%, rM = 12%, and bi = 1.6. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. %
- If D1 = $1.50, g (which is constant) = 2.1%, and PO = $56, what is the stock's expected capital gains yield for the coming year?The dividend yield (i.e. D1/P0) is a good measure of the expected return on a common stock under which of the following circumstances? g = 0 g > 0 g < 0 g is expected to remain constant over time under no circumstancesIf d1 = 1.25, g (which is constant) = 4.7%, and Po = $26, what is the expected dividend yield for the coming year? Bond valuation related problems should be solved by using a financial calculator or MS excel spreadsheet. Accordingly, you must show the values of all relevant time valu of money variables



