You may purchase a stock for $20.73. It will pay a guaranteed dividend of $1.69. If you sell it for $30.13 after collecting the dividend, then what is your (dollar) capital gain (or loss)?
Dollar gain = Ending value + dividends - beginning value
Dollar gain = 30.13 + 1.69 - 20.73
Dollar gain = 11.09
You may purchase a stock for $20.73. It will pay a guaranteed dividend of $1.69. If...
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Assume a company has a current stock price of 80 and will pay 2.8 as dividend in one year; its equity cost of capital is 14%. What price must you expect the stock to sell for immediately after the firm pays the dividend in one year to justify its current price? (Round your answer to two decimal digits)
Assume a company has a current stock price of 80 and will pay 2.8 as dividend in one year; its equity cost of capital is 14%. What price must you expect the stock to sell for immediately after the firm pays the dividend in one year to justify its current price? (Round your answer to two decimal digits)
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