Asked by Tuty

National Telephone and Telegraph Company common stock currently sells for $60 per share. NTT is expected to pay a $4 dividend during the coming year, and the price of the stock is expected to increase to $65 a year from now. Determine the expected (ex-ante) percentage holding period return on NTT common stock.
Answered by Ms. Sue
HPR = ((Present Value, or face Value, End-Of-Period Value) + (Any Intermediate Gains eg. Dividends) - (Initial Value)) /(Initial Value)

65 + 4 - 60 = 9

9/60 = 0.15 = 15%

Answered by Tuty
Suppose that a year later, NTT's common stock is selling gor $75 per share. During the 1 year period, NTT paid a $4 common stock dividend. Determine the relaized (ex-post) percentage holding period return on NTT common stock.
Answered by Anonymous
b. Suppose that 1 year later, NTT’s common stock is selling for
$75 per share. During the 1-year period, NTT paid a $4 common
stock dividend. Determine the realized (ex-post) percentage
holding period return on NTT common stock.
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