Suppose you expect International Computers Inc (ICI) to pay a dividend of $10 per share in...
Suppose you expect International Computers Inc (ICI) to pay a
dividend of $10 per share in
one year and to trade for $120 per share just after that dividend
payment. If ICI is currently
trading at $100 per share and investments with equivalent risk to
ICI’s stock have an
expected return of 30%, the capital gain rate is closest to?
Homework Answers
CAPITAL GAIN RATE =(P1-P0)/P0
P0 = 100, P1 = 120
CAPITAL GAIN RATE =(P1-P0)/P0 = (120-100)/100 = 20%
Answer : 20% (Thumbs up please)
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