Problem: National Telephone and Telegraph (NTT) company's common stock currently sell for $60 per share. NTT is expected to pay a $4 dividend during the coming year and the price of stock is expected to increase to $65 a year from now.
A. Determine the expected (ex-ante) percentage holding period return on NTT common stock.
B. 1 year later NTT's common stock selling for $75 per share during 1 year period, NTT paid $4 common stock dividend, Determine the realized (ex-Post) percentage holding period return on NTT common stock.
C. Repeat (b) given that NTT's common stock is selling for $58, 1 year later
D. Repaet (b) given that NTT's common stock is selling for $50 1 year later.