One year ago, James Sirlank bought Dell Computer common stock for $20 per share. Today the stock
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One year ago, James Sirlank bought Dell Computer common stock for $20 per share. Today the stock is selling for $19 per share. During the year, James received four dividend payments, each in the amount of $0.20 per share.
(a) What rate of return did James earn during the year?
(b) What were the (1) dividend yield and (2) the capital gains yield associated with the stock for the year?
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Sufiyan Ahmed Tariq
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