1. Mumba’s stock originally sold for K32 per share and now sells for K37. The dividend last paid was K3.50. Find the Dividend yield and capital gains yield and total yield/return?
2. Zoom Motors Plc. is expected to pay a K 1.00 per-share dividend at the end of the year. The stock sells for K 20 per share and its required rate of return is 11%. The dividend is expected to grow at a constant rate forever. What is the growth rate, g, for this stock?
3. Assume that the annual dividend on each share of preferred stock is K15. Each share of preferred stock is currently trading at K 250. What is the yield on preferred stock?
4. Dr. Mambo’s stock currently sells at K 25 per share. Its previous selling price was K 20 with the last paid dividend of K 2.50. Find the total return
5. What rate of return is expected from a stock that sells for K30 per share, pays K 1.50 annually in dividends, and is expected to sell for K33 per share in one year?
6. Assume that the expected dividend on each share of common stock is K 5. Each share of common stock is currently trading at K50 and has an expected growth rate of 7%. What is the yield on common stock?