Answer:
2.45%
Explanation:
dividend yield = annual dividend / Stock Price per share
$0.72 / $ 29.40 = 0.0245 (2.45%)
The correct answer is yes the money increase because it’s just right
The <u>slope</u> of the characteristic line of a stock's returns versus those of the market measures the stock's systematic risk.
Answer: Dividend of $100,000, Capital Gain of $100,000 and Tax Free Return on basis of $100,000
Explanation:
Longhorn Company reports current E&P of $100,000 in 20X3 and still distributed $300,000 to it's sole shareholder. Because it had $100,000 in current E&P, that is all it can declare as Dividends. For this reason, the shareholder will recognize $100,000 as Dividends.
The Shareholder has a basis of $100,000 in the stock of Longhorn. As a result of this, $100,000 of the Distribution will be termed a TAX FREE Return on Basis because he is receiving a return on his basis that is neither a dividend nor capital gain.
The remaining $100,000 will be considered a Capital Gain as it reflects a rise in his stock.
