INVESTMENT

posted by .

THE PRICE OF THE STOCK OF CLARKSON CORPORATION WENT FROM $50 TO $56 LAST YEAR. THE FIRM ALSO PAID $2 IN DIVIDENDS. COMPUTE THE RATE OF RETURN

  • INVESTMENT -

    (6 + 2)/50 = 16%

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance and Investment

    What is the value of a common stock if: a) If earnings and dividends are growing annually at 10%, the current dividend is $1.32 and investors require a 15% return on investmenets in common stock?
  2. investments

    #13 Hunter corporation had a dividend payout ratio of 63% in 1999.the retention rate in 1999 was. a)37% d)0% b)63% e)100% c)50% #14 The beta for the DAK corporation is 1.25. If the yield on 30 year T-bonds is 5.65%, and the long term …
  3. Finance

    The Frenall Company just paid a common stock dividend of $4.00 per share. The required rate of return on Frenall stock is 18.4 percent. Due to a major restructuring of the company’s production process, Frenall’s dividends are expected …
  4. Finance

    MMK Cos. normally pays an annual dividend. The last such dividend paid was $2.3, all future dividends are expect to grow at a rate of 6 percent per year, and the firm faces a required rate of return on equity of 18 percent. If the …
  5. Healthcare Finance

    A firm that owns the stock of another corporation does not have to pay taxes on the entire amount of dividends received. In general, only 30 percent of the dividends received by one corporation from another are taxable. The reason …
  6. Finance

    Assume a stock has just paid a $2.00-per-share dividend. Analysts believe that future dividends will grow at a 4% rate forever, and investors require an 11% return on their investment in this stock. What should the stock’s price …
  7. Healthcare Finance

    2 A firm that owns the stock of another corporation does not have to pay taxes on the entire amount of dividends received. In general, only 30 percent of the dividends received by one corporation from another are taxable. The reason …
  8. Healthcare Finance

    2 A firm that owns the stock of another corporation does not have to pay taxes on the entire amount of dividends received. In general, only 30 percent of the dividends received by one corporation from another are taxable. The reason …
  9. fin 370

    (individual or component costs of capital)Compute the cost of the capital for the firm for the following:?
  10. fin 370 # 2

    (individual or component costs of capital) Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following: …

More Similar Questions