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If the price for Microsoft stock is 36$ today, and the dividend next period is $2.50...

If the price for Microsoft stock is 36$ today, and the dividend next period is $2.50 and the next price next period is expected to be $54, what is the:

A) Dividend Yield?

B) Price Appreciation?

C) Total Return?   

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Answer #1

a) Dividend yield:-

=2.5/36

=6.94%

b) Price appreciation:-

=54/36-1

=50%

c) Total return:-

=dividend yield+capital yield

=56.94%

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