The yield(s) below give you the return on a given dividend paying common stock. Group of...
The yield(s) below give you the return on a given dividend paying common stock.
Group of answer choices
marginal yield
capital gain yield
dividend yield
dividend yield plus capital gains yield
total bond yield
Homework Answers
Dividend yield is the correct answer.
Return on a given dividend paying stock is called as Dividend Yield.
Dividend yield = Annual dividend / Stock price
The dividend is the amount of money a company pays to the shareholder for owning a share of its stock. Dividend yield is Dividend divided by the current stock price
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The yield(s) below give you the return on a given dividend
paying common stock.
Group of...
total return equals 1. dividend yield 2. yearly dividend in dollars plus capital gain 3. capital...
total return equals 1. dividend yield 2. yearly dividend in dollars plus capital gain 3. capital gains 4. yearly dividend in dollars less capital gain 5. capital gains less yearly dividends in dollars
Which of the following statements is CORRECT? a. A non-dividend paying stock will decline in price...
Which of the following statements is CORRECT? a. A non-dividend paying stock will decline in price over time. b. A non-constant growth stock whose growth rate decreases will decline in price over time. c. A constant growth stock whose growth rate is negative will increase in price over time. d. A constant growth stock whose growth rate is negative will remain at the same price over time. e. A constant growth stock whose growth rate is negative will decline in...
consider a stock that is not yet paying dividends. You expect the company to begin paying...
consider a stock that is not yet paying dividends. You expect the company to begin paying dividends in 6 years. The first dividend (d6) will be $1. For two years after that, dividends will increase by 37% each year. After that dividends will increase at a rate of 2.5 % per year forever. The required return of this stock is 12.5%. a) What is the value of the stock today (P0)? What is the value of the stock in five...
The holding-period return (HPR) for a stock is equal to A. the real yield minus the...
The holding-period return (HPR) for a stock is equal to A. the real yield minus the inflation rate. B. the nominal yield minus the real yield. C. the capital gains yield minus the tax rate. D. the capital gains yield minus the dividend yield. E. the dividend yield plus the capital gains yield.
e) (5 marks) Common stocks that pay no dividends are generally priced lower than dividend paying...
e) (5 marks) Common stocks that pay no dividends are generally priced lower than dividend paying stocks. f) (5 marks) There is more uncertainty associated with the future returns of common stocks than with the returns of bonds and preferred stock. g) (5 marks) When interest rates go up, the market price of a bond goes up h) (5 marks) The yield on common stock comes from two sources: the dividend yield and the capital gains yield.
Suppose you know that Paul's company stock currently sells for $58 per share and the required return on the stock is 12.00%. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If its the comp
Suppose you know that Paul's company stock currently sells for $58 per share and the required return on the stock is 12.00%. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If its the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
1. The current dividend yield on Clayton's Metals common stock is 3.2 percent. The company just...
1. The current dividend yield on Clayton's Metals common stock is 3.2 percent. The company just paid a $1.48 annual dividend and announced plans to pay $1.54 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock? 7.25 percent 7.82 percent 8.08 percent 8.75 percent 8.39 percent 2. Which one of the following is computed by dividing next year's annual dividend by the current stock...
For XYZ Corp. paying a constant annual dividend, its required return increased. Which is true for...
For XYZ Corp. paying a constant annual dividend, its required return increased. Which is true for XYZ Corp.: Select one: 0 a. Its capital gains yield has increased o b. Its stock price has decreased O c. Its stock price has increased O d. Its capital gains yield has decreased
The dividend yield represents Group of answer choices a the return investors receive from dividend income...
The dividend yield represents Group of answer choices a the return investors receive from dividend income only b the earnings as a percentage of the market price of the firm c the promised return that investors can earn on their stock investment d the percentage of its earnings that a firm pays out in dividends
Q8) You observe a stock price of S 18.75. You expect a dividend growth rate of...
Q8) You observe a stock price of S 18.75. You expect a dividend growth rate of 5%, and the most recent dividend was $1.50. What is the required return? What is the dividend yield and capital gains yield? Do 1 +g) 0
Which of the following statements is CORRECT? a. A non-dividend paying stock will decline in price over time. b. A non-constant growth stock whose growth rate decreases will decline in price over time. c. A constant growth stock whose growth rate is negative will increase in price over time. d. A constant growth stock whose growth rate is negative will remain at the same price over time. e. A constant growth stock whose growth rate is negative will decline in...
e) (5 marks) Common stocks that pay no dividends are generally priced lower than dividend paying stocks. f) (5 marks) There is more uncertainty associated with the future returns of common stocks than with the returns of bonds and preferred stock. g) (5 marks) When interest rates go up, the market price of a bond goes up h) (5 marks) The yield on common stock comes from two sources: the dividend yield and the capital gains yield.
For XYZ Corp. paying a constant annual dividend, its required return increased. Which is true for XYZ Corp.: Select one: 0 a. Its capital gains yield has increased o b. Its stock price has decreased O c. Its stock price has increased O d. Its capital gains yield has decreased
Q8) You observe a stock price of S 18.75. You expect a dividend growth rate of 5%, and the most recent dividend was $1.50. What is the required return? What is the dividend yield and capital gains yield? Do 1 +g) 0
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