You just purchased a share of Northstar Sports for $92.46. You expect to receive a dividend of $4.80 in one year. If you expect the price after the dividend is paid to be $94.23, what total return do you expect to earn over the year? What do you expect to be your dividend yield? What do you expect to be your capital gain rate? a. If you expect the price after the dividend is paid to be $94.23, what total return do you expect to earn over the year? Your expected total return to earn over the year is 7.11 %. (Round to two decimal places.) b. What do you expect to be your dividend yield? Your expected dividend yield is%. (Round to two decimal places.)

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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You just purchased a share of Northstar Sports for $92.46. You
expect to receive a dividend of $4.80 in one year. If you expect the
price after the dividend is paid to be $94.23, what total return do you
expect to earn over the year? What do you expect to be your
dividend yield? What do you expect to be your capital gain rate?
...
a. If you expect the price after the dividend is paid to be $94.23,
what total return do you expect to earn over the year?
Your expected total return to earn over the year is 7.11 %. (Round
to two decimal places.)
b. What do you expect to be your dividend yield?
Your expected dividend yield is%. (Round to two
decimal places.)
Transcribed Image Text:You just purchased a share of Northstar Sports for $92.46. You expect to receive a dividend of $4.80 in one year. If you expect the price after the dividend is paid to be $94.23, what total return do you expect to earn over the year? What do you expect to be your dividend yield? What do you expect to be your capital gain rate? ... a. If you expect the price after the dividend is paid to be $94.23, what total return do you expect to earn over the year? Your expected total return to earn over the year is 7.11 %. (Round to two decimal places.) b. What do you expect to be your dividend yield? Your expected dividend yield is%. (Round to two decimal places.)
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