How capital gains and dividend growth affect stock prices


Assignment: PARTICIPATION QUESTIONS

1. What are some of the limitations of the payback method and how are these addressed by the net present value (NPV) method?

2. Identify the factors used to calculate present and future cash flows.

3. Distinguish between the annual percentage rate and effective annual rate, and how each is used in financial decision making.

4. Describe the various types of annuities and how they are calculated.

5. If you hold a large portfolio of corporate bonds and you wake up one morning to learn that interest rates have risen unexpectedly, are you concerned? If so, why? If not, why not?

6. Understand the relationship between interest rates and bond values.

7. Review how time to maturity and the coupon rate affect interest rate risk

8. Compare and contrast the characteristics of zero coupon bonds, government bonds and corporate bonds.

9. Describe the difference between real and nominal rates.

The total return on a particular stock consists of both the dividend yield and the capital gain. Does it matter in what form an investor earns his/her return? Are there some instances where investors might be very particular

10. Regarding the composition of the total return i.e. how much is from dividends and how much is from capital appreciation?

11. Describe how capital gains and dividend growth affect stock prices.

12. Review how the price-to-earnings ratio and enterprise value ratios are used to compare stock values.

13. Understand how the NYSE and NASDAQ are organized and operate.

Format your assignment according to the following formatting requirements:

1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.

Solution Preview :

Prepared by a verified Expert
Financial Management: How capital gains and dividend growth affect stock prices
Reference No:- TGS03015323

Now Priced at $40 (50% Discount)

Recommended (91%)

Rated (4.3/5)