You purchase one share of XYZ Corp for $60. You expect to receive a dividend of $4 in one year. If you expect the price after the dividend is paid to be $85, calculate: a) The total return in dollars b) The dividend yield c) The capital gain rate d) The total return rate

You purchase one share of XYZ Corp for $60. You expect to receive a dividend of $4 in one year. If you expect the price after the dividend is paid to be $85, calculate: a) The total return in dollars b) The dividend yield c) The capital gain rate d) The total return rate

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 6DQ

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Accounting question

You purchase one share of XYZ Corp for $60. You expect to
receive a dividend of $4 in one year. If you expect the price after
the dividend is paid to be $85, calculate:
a) The total return in dollars
b) The dividend yield
c) The capital gain rate
d) The total return rate

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