The market price of the stock is 72 a share and the market


1. Calculate the effective annual rates for the following:

a. 24% compounded daily

b. 24% compounded quarterly

c. 24% compounded every four months

d. 24% compounded semi-annually

e. calculates the effective monthly rate for parts (a) to (d)

2. Baker steel is planning on paying an annual dividend of $2.40 a share next year. The market price of the stock is $72 a share and the market return is 14.7 percent. What is the capital gains yield?

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Financial Management: The market price of the stock is 72 a share and the market
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