total return equals 1. dividend yield 2. yearly dividend in dollars plus capital gain 3. capital...

Question

Question

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

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Correct option is: 2. Yearly dividend in dollars plus capital gains

Return from invested stock is equal to any dividend received on shares plus capital gain arises on sale of shares during the year

Therefore, Option 2 is correct.

Add a comment

Answer 2

Similar Homework Help Questions

The capital gains yield equals which one of the following? A. Total yield B. Required rate...

The capital gains yield equals which one of the following? A. Total yield B. Required rate of return C. Market rate of return D. Dividend yield E. Market price growth rate
Myron Gordon and John Lintner believe that the required return on equity increases as the dividend payout ratio is lowered. Their argument is that

Myron Gordon and John Lintner believe that the required return on equity increases as the dividend payout ratio is lowered. Their argument is that A. investors are indifferent between dividends and capital gains B. investors view dividends as being less risky than potential future capital gains C. investors require that the dividend yield plus the capital gains yield equal a constant D. investors prefer a dollar of expected capital gains to a dollar of expected dividends because of the lower tax rate on capital...
Relative contribution to total return AAP (Advance Auto Parts, Inc.) has dividend yield of 0.18%, its...

Relative contribution to total return AAP (Advance Auto Parts, Inc.) has dividend yield of 0.18%, its capital gains yield of 2019 is 1.57%. What do you observe about the relative contribution to total return from the dividend yield as opposed to the capital gains yield?

The cost of equity capital equals the dividend yield minus the growth rate in dividends for...

The cost of equity capital equals the dividend yield minus the growth rate in dividends for a constant dividend growth stock. True or False?
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?
Dividend growth rate is referred to as: Select one: a. Dividend yield b. Capital gains yield...

Dividend growth rate is referred to as: Select one: a. Dividend yield b. Capital gains yield c. Total return d. Discount rate

1. According to the constant dividend growth model, which of the following is true A. the...

1. According to the constant dividend growth model, which of the following is true A. the dividend yield is the same as the capital gains yield. B. the constant growth rate is the same as the dividend yield. C. the capital gains yields is the same as the constant dividend growth rate. D. The price growth rate is the same as the dividend yield. 2. Which of the following is true about stock returns? A. the dividend yield must always...
needed with formula A stock has had the following year-end prices and dividends. What is the arithmetic return over this period? Price Dividend Year 51.50 $ 59.32 $ 0.65 64.13 $ 0.70 57.86 $ 0.77 65....

needed with formula A stock has had the following year-end prices and dividends. What is the arithmetic return over this period? Price Dividend Year 51.50 $ 59.32 $ 0.65 64.13 $ 0.70 57.86 $ 0.77 65.19 0.86 74.86 $ 0.95 Complete the following analysis. Do not hard code values in your calculations Capital Gains Dividend Total Yield Yield Return Year 1 to 2 2 to 3 3 to 4 4 to 5 5 to 6 Arithmetic return A stock has...
Stock A has a dividend yield of 8% but no capital gain. Stock B offers a...

Stock A has a dividend yield of 8% but no capital gain. Stock B offers a capital gain but no dividend. If a corporate investor in the 21% tax bracket earns the same after-tax return from the two stocks, what capital gain does B offer? Multiple Choice 8.29% 9.06% 6.00% 11.31%

The expected pretax return on three stocks is divided between dividends and capital gains in the...

The expected pretax return on three stocks is divided between dividends and capital gains in the following way! Expected Expected Stock Dividend Capital Gain $10 50 Required: o. If each stock is priced at $195, what are the expected net percentage returns on each stock too) a pension fund that does not pay taxes, a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and (ii) an individual with an effective tax rate...

total return equals 1. dividend yield 2. yearly dividend in dollars plus capital gain 3. capital...

Homework Answers

Add Answer to:
total return equals 1. dividend yield 2. yearly dividend in dollars plus capital gain 3. capital...

Post as a guest

Earn Coins

The capital gains yield equals which one of the following? A. Total yield B. Required rate...

Myron Gordon and John Lintner believe that the required return on equity increases as the dividend payout ratio is lowered. Their argument is that

Relative contribution to total return AAP (Advance Auto Parts, Inc.) has dividend yield of 0.18%, its...

The cost of equity capital equals the dividend yield minus the growth rate in dividends for...

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

Dividend growth rate is referred to as: Select one: a. Dividend yield b. Capital gains yield...

1. According to the constant dividend growth model, which of the following is true A. the...

needed with formula A stock has had the following year-end prices and dividends. What is the arithmetic return over this period? Price Dividend Year 51.50 $ 59.32 $ 0.65 64.13 $ 0.70 57.86 $ 0.77 65....

Stock A has a dividend yield of 8% but no capital gain. Stock B offers a...

The expected pretax return on three stocks is divided between dividends and capital gains in the...

total return equals 1. dividend yield 2. yearly dividend in dollars plus capital gain 3. capital...

Homework Answers

Add Answer to: total return equals 1. dividend yield 2. yearly dividend in dollars plus capital gain 3. capital...

Post as a guest

Earn Coins

Add Answer to:
total return equals 1. dividend yield 2. yearly dividend in dollars plus capital gain 3. capital...