1. The market value of the stocks of Shine Corporation at the beginning of year 1 is $120 per share, at the beginning of year 2 is $ 130. It declares dividends of $ 20 per share. a) What is the holding period return from the said investment? b) Assume no divided is declared. What is the holding period return? c) What is the current yield? d) What is the appreciated value of the investment?

1. The market value of the stocks of Shine Corporation at the beginning of year 1 is $120 per share, at the beginning of year 2 is $ 130. It declares dividends of $ 20 per share. a) What is the holding period return from the said investment? b) Assume no divided is declared. What is the holding period return? c) What is the current yield? d) What is the appreciated value of the investment?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section7.4: Valuing Common Stocks

Problem 3ST

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