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Sifa Company is selling for Shs60.00 per share today. In one year, Sifa Company will be selling for Shs58.00 per share, and the dividend for the year will be Shs4.00. What is the cash return on this stock?

Respuesta :

The cash return on the stock given its value now, dividend per share and its value in a year's time is  3.34% .

What is the cash return?

The cash return is the sum of the dividend yield and the price return.

Dividend yield = dividend / price of the share today

$4 / 60 = 6.67%

Price return = (price in year's time - price today) / price today

= (58 - 60) / 60 = -3.33%

Cash return = 6.67% - 3.33% = 3.34%

To learn more about dividend yield, please check: https://brainly.com/question/27342287

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