The rate of return on an investment, also called the yield, is the relationship between the yearly

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The rate of return on an investment, also called the yield, is the relationship between the yearly (annual) inflow from the investment and the cost of the investment. For example, a $100 savings account that earns $3 would have a 3 percent yield ($3  $100). Calculate the yield for the following investments.

a. $8 dividend on a stock that cost $160

b. $1,000 rent on land that cost $10,000

c. $74 interest on a bond that cost $960

d. $5,600 profit from a business that had a startup cost of $78,000

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Business Finance

ISBN: 9780357532348

1st Edition

Authors: Les Dlabay, James L. Burrow

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