Suppose that on January 1, 2014, you bought 100 shares of M.Co for $100 per share with the expectation of receiving a perpetual dividend of $10 per share. On January 1, 2015, M.Co announces that it will increase its annual dividend to $20 per share. Upon announcement, the stock price rises to $200.
-What was the expected return on the investment as on January 1,2014?
A) 110 percent.
B) 10 percent.
C) 20 percent.
Correct Answer:
Verified
Q5: Company Y can outperform Company Z on
Q6: What is the dividend yield?
A)2.0 percent.
B)4.4 percent.
C)5.0
Q7: Which of the following is NOT one
Q8: Which of the following represents the minimum
Q9: The expectations treadmill can be detrimental to
Q11: The expectations treadmill is the dynamic behind
Q12: List and describe the four-part decomposition of
Q13: Which of the following are potential reasons
Q14: What is the zero-growth return?
A)10.0 percent.
B)14.4 percent.
C)3.0
Q15: Use the following financials to answer
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