Answer = 15.79
Capital gain yield = (P1-P0)/P0 = (46.72-40.35)/40.35 = 15.79%
6:11 PM Thu Jan 16 HPR Calculation 1A eview Suppose that Coca-Cola is currently selling at...
QUESTION 5 Coca Cola stock is currently selling for $51.40 a share. It is expected to reach a price of $53.20 a year from now. You expect the company to pay a dividend of $1.40 in the next year and the stock's beta is 0.66. The risk-free rate of return is 3.5% and the market rate of return is 11.5%. CAPM states that: RR = RF + B(RM-RF). d. Based solely on your computations, should you invest in Coca Cola...