What is your capital gain rate? You just purchase a share of Apple for $150.You expect to receive a dividend of $12 inone year. If you expect the price after thedividend is paid to be $185, what totalreturn will you have earned over the year?What was your dividend yield? What is yourcapital gain rate?

The question requires the determination of the total return, dividend yield and capital gains yield.…

Answered: You just purchase a share of Apple for…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter13: Other Financing Alternatives

Section: Chapter Questions

Problem 1aM

See similar textbooks

Similar questions

Suppose you purchased a house in San Diego in January of 1994 for $75,000. You then sold that house in December of 2006 for $350,000. Assume that the CPI rose in that period from 107 to 180. What was your total nominal rate of return? How about your annual nominal rate of return? What was your total real return? How about you annual real return?
you invested 10,000 dollars into a business venture. One year later you realized a profit of $1,400. What is your annual rate of return?
You buy a stock for $125, receive a dividend of $12 and sell the stock for $95 one year later. What is your dollar and percent return? Later you learn inflation was 5% during the period you owned the stock. What was your real percentage return?
You put up $50 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of $3.50. Your HPR was ____.
Suppose you inherited $100,000 and invested it at 7% per year. What is the most you could withdraw at the end of each of the next 10 years and have a zero balance at Year 10? How would your answer change if you made withdrawals at the beginning of each year? SHOW WORK AND USE FINANCIAL CALCULATOR
You purchased JM Smucker (SJM) two years ago. During that time the total return for SJM has been 21.47%. What is your annualized return?
You are trying to decide how much to save for retirement. Assume you plan to save $4,500 per year with the first investment made one year from now. You think you can earn 6.0% per year on your investments and you plan to retire in 45 years, immediately after making your last $4,500 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,500 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 16 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 16th withdrawal (assume your savings will continue to earn 6.0% in retirement)? d. If, instead, you decide to withdraw $191,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…
Assuming your projected sales (and therefore tax bracket) are predicted to increase dramatically over the next 5 years, what should you do?
You have $76,000 in your account that you want to grow to triple that amount in 25 years. What annual rate of return is necessary to reach your goal? (Note: Enter your answer is a decimal, not a percentage. For example, enter .0452 instead of 4.52%) Your Answer: Answer
Jitu
You plan to start your own business and are investing today to grow some seed money. You have $16917 to invest and aim to have $24960 in 6 years. What interest rate must you earn to meet your goal? Answer as a percent. Include 2 decimal places
How much would you be prepared to pay for a share in 3 years’ time that pays a $3.51 dividend each year constantly ? Assume the required rate of return is expected to remain constant at 5.17 per cent per year. Round your final answer to 2 decimal places. E.g. if the final value is $12345.8342, please type 12345.83 in the answer box (do not type the dollar sign).

SEE MORE QUESTIONS

Recommended textbooks for you

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

Fundamentals of Financial Management, Concise Edi…

Finance

ISBN:

9781285065137

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Fundamentals of Financial Management, Concise Edi…

Finance

ISBN:

9781305635937

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

Fundamentals of Financial Management, Concise Edi…

Finance

ISBN:

9781285065137

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Fundamentals of Financial Management, Concise Edi…

Finance

ISBN:

9781305635937

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

You just purchase a share of Apple for $150. You expect to receive a dividend of $12 in one year. If you expect the price after the dividend is paid to be $185, what total return will you have earned over the year? What was your dividend yield? What is your capital gain rate?