Please help me with this problem Thank you The current stock

Please help me with this problem. Thank you!

The current stock price of Delta Company is $18.00. At the end of the first year the stock is expected to pay a dividend of $2.00 per share. Also at the end of the first year the stock is expected to be priced at $20.35 What is the dividend yield of Delta Company? What is the capital gain yield of Delta Company? In both cases place your answer in percentage form using two decimal places. For example, an answer of say six point seven five percent would be entered 6.75

Solution

1. dividend yield = annual dividend / current stock price * 100

=>$2.00 / $18.00 *100

=>11.11%.

2.capitall gain yield = (expected price - current price) / current price *100

=> ($20.35 - $18.00) / $18.00 *100

=>13.06%.

Please help me with this problem. Thank you! The current stock price of Delta Company is $18.00. At the end of the first year the stock is expected to pay a div

Get Help Now

Submit a Take Down Notice

Tutor
Tutor: Dr Jack
Most rated tutor on our site