You just purchased a share of SPCC for $100. You expect to receive a dividend of $5 in one year. If you expect the price after the dividend is paid to be $110, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 6DQ
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5. You just purchased a share of SPCC for $100. You expect
to receive a dividend of $5 in one year. If you expect the
price after the dividend is paid to be $110, what total
return will you have earned over the year? What was your
dividend yield? Your capital gain rate?
Transcribed Image Text:5. You just purchased a share of SPCC for $100. You expect to receive a dividend of $5 in one year. If you expect the price after the dividend is paid to be $110, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate?
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