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ECTG 1516202
1243-1 ACCTG 15
ACCTS 151G 202
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Accounting Defir
dividenc
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11 Question 11 (10 marks)
Consider a world that only consists of the three stocks shown in the following table:
\begin{tabular}{|c|c|c|c|c|}
\hline Stock & \begin{tabular}{l}
Total Number of \\
Shares \\
Outstanding
\end{tabular} & Share price at to & Share price at t1 & \begin{tabular}{l}
Cash dividend \\
per share at t1
\end{tabular} \\
\hline First Bank & 101 Million & \( \$ 88 \) & \( \$ 90 \) & \( \$ 2 \) \\
\hline Fast Mover & 56 Million & \( \$ 107 \) & \( \$ 95 \) & \( \$ 4 \) \\
\hline Funny Bone & 232 Million & \( \$ 36 \) & \( \$ 42 \) & \( \$ 3 \) \\
\hline
\end{tabular}
Note: Please keep 2 decimal places in your final answers. The symbol, such as \( \% \) or \( \$ \), has been given, so you only need to type numbers in the boxes. Intermediate results should not be rounded to less than 6 decimal places. For part \( \mathrm{a}, \mathrm{b} \) and \( \mathrm{d} \), answers should be expressed in percentage rounded to the nearest \( 0.1 \% \), for example, enter 0.123456 as \( 12.3(\%) \) in the answer box below. For part c, answers should be expressed in dollars rounded to the nearest \( \$ 0.01 \), for example, enter \( \$ 0.123456 \) as (\$) 0.12 in the answer box below.
a. Calculate the dividend yield for First Bank. \( \square \) \( \% \)
b. Calculate the total return for Fast M?ver. \( \square \) \( \% \)
c. Assuming that you buy 1000 shares of Funny Bone at to and sell them at \( \mathrm{t1} \), what is your dollar return?
\( \$ \)
d. Assuming that you construct a portfolio at to, which consists of 100 shares of First Bank and 100 shares of Funny Bone. What is your average return at \( t 1 \) ? \( \square \) \( \% \)
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