Monday, October 12, 2009

A. National Telephone and Telegraph (NTT) Company common stockcurrently sells for $60 per share. NTT is expect?

a. National Telephone and Telegraph (NTT) 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.


b. Suppose that 1 year later, NTT鈥檚 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.


c. Repeat (b) given that NTT鈥檚 common stock is selling for $58 1 year later.


d. Repeat (b) given that NTT鈥檚 common stock is selling for $50 1 year l
A. National Telephone and Telegraph (NTT) Company common stockcurrently sells for $60 per share. NTT is expect?
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