During the Year,Success Ltd Shares Have Increased from $8 to $9

question 46

Multiple Choice

During the year,Success Ltd shares have increased from $8 to $9 and shareholders received a final dividend of 50 cents per share,fully franked at the company tax rate of 30 per cent.Calculate first the conventional rate of return and second,the dividend yield (using the beginning of the year share price) on Success shares.

• A)18.75% and 6.25%.
• B)15.18% and 5.5%.
• C)18.75% and 5.5%.
• D)15.18% and 6.25%.

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Definitions:

Expected Retirement Costs

Projected expenses related to retiring assets, such as decommissioning costs or asset disposals.

Disposal Costs

Expenses directly related to the removal or disposal of an asset, including environmental cleanup, dismantling, and legal fees.

Land Account

An account in the ledger that represents the cost of land owned by a business.

Parking Lot

An outdoor area or a structure designated for parking vehicles.