if rex corporation is selling for 100 per share today and is expected to sell for...
You short-sell 100 shares of Tuckerton Trading Co., now selling for $20 per share. What is your maximum possible gain ignoring transactions cost? One year ago, you purchased 400 shares of stock for $12 a share. The stock pays $0.22 a share in dividends each year. Today, you sold your shares for $28.30 a share. What is your total dollar return (absolute return, that is, in dollars and cents) on this investment? One year ago, you bought a stock for...
Today you buy 1 share of ABC Inc. at $100 per share. A year from now ABC will pay a dividend of $3 per share for sure. The price of ABC a year from now is uncertain and depends on the state of the economy. A year from now the economy will either be in a recession, a state of “normal" growth, or a boom with probabilities of 30%, 40%, and 30% respectively. After analyzing ABC you determine that the...
A share of stock is now selling for $100. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What must investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 6% and the expected rate of return on the market is 20%. (Round your answer to 2 decimal places.) Expected selling price
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0. Today you bought 100 shares of ABC Inc. at S100 per share. A year from now ABC will pay a dividend of $2 per share for sure. The price of ABC a year from now is uncertain and depends on the state of the economy. A year from now the economy will either be in a recession, a state of "normal" growth, or a boom with probabilities of 30%, 40%, and 30% respectively. After analyzing ABC...
Problem 5: A share of stock sells for $100 today. It will pay a dividend of $6 per share at the end of the year. Its beta is 0.8. What do investors expect the stock to sell for at the end of the year? The risk-free rate of interest is 4% and the expected rate of return on the market is 12%
A stock is selling today for $60 per share. At the end of the year, it pays a dividend of $3 per share and sells for $63. a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $54. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by...
Suppose that the ABC Company is expected to be worth $100 per share one year from today. How much are you willing to pay for one share today if the risk-free rate is 7%, the expected rate of return of the market is 15%, and the company's beta is 1.5? Company pays annual perpetual dividend of $1 per share.
Spartan Sofas, Inc. is selling for $50.00 per share today. In one year, Spartan will be selling for $48.00 per share, and the dividend for the year will be $3.00. What is the return on Spartan? Is it 1 or 2 Explain
Assume that the price of a share of stock is $40 today, its projected selling price in one year is $24, and its estimated per-share dividend in one year is $0.50. The expected rate of return for this stock is: Your Answer: Answer units
The common stock of Sweet Treats is selling for $46.55 per share. The company is expected to have an annual dividend increase of 2.8 percent indefinitely and pay a dividend of $3.40 in one year. What is the total return on this stock?