
Realized Returns,
Realized returns refer to the actual returns that are earned during the holding period of an investment. Realized returns include dividends, interest payments, and cash distributions. It is acquired though the movement of prices of stocks from one period to another or from time to time. The movement in price reflects the changes that occur until the holding period of time of an investment. It carries the dividend amount with it. It can be measured in two ways, which are capital gain yield and dividend yield.
The change in the prices from one period to another until the holding period or the appreciation that occurred in the market refers to capital gain yield. The increase in the price of a particular stock primarily due to the announcement of a dividend refers to dividend yield.
To determine:
The returns earned from dividend yield and capital gain.

Want to see the full answer?
Check out a sample textbook solution
Chapter 11 Solutions
Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
- Correctly answer ...?? Calculate the price of a bond with face value $1,000, coupon rate 6%, and market interest rate 8%.arrow_forwardCalculate the price of a bond with face value $1,000, coupon rate 6%, and market interest rate 8%.arrow_forwardneed a help What is the present value of $10,000 received in 5 years at 8% discount rate?arrow_forward
- A company has a debt-to-equity ratio of 1.5. If debt is $900,000, what is equity?arrow_forwardIf a stock's dividend yield is 4% and the stock price is $50, what is the annual dividend payment?arrow_forwardWhat is the future value of $5,000 invested at 6% interest for 4 years? need a helparrow_forward
- 19. What is the effective annual interest rate for a savings account with nominal rate 6% compounded monthly?arrow_forwardWhat is the future value of $5,000 invested at 6% interest for 4 years?arrow_forwardNeed help Calculate EPS for a company with net income $2,000,000 and 1,000,000 shares outstanding.arrow_forward
- Need help 9. A company has fixed costs $20,000, variable costs $5/unit, and sells products at $10/unit. What is the break-even point?arrow_forwardNo gpt dislike Calculate ROI for a $5,000 investment yielding $6,000 after 1 year.arrow_forwardNo ai Calculate ROI for a $5,000 investment yielding $6,000 after 1 year.arrow_forward
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education





