9. Calculating Return on Investment. Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase

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9. Calculating Return on Investment. Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was

$52 a share, plus a total commission of $29 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.55 per share for the first year and $1.67 per share the second year. Also, assume that at the end of two years, you sold your Coca-Cola stock for $58 a share minus a total commission of $34 to sell the stock. (Obj. 3)

a. Calculate the dividend yield for your Coca-Cola stock at the time you purchased it.

b. Calculate the dividend yield for your Coca-Cola stock at the time you sold it.

c. Calculate the total return for your Coca-Cola investment when you sold the stock at the end of two years.

d. Calculate the annualized holding period yield for your Coca-Cola investment at the end of the two-year period.

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Personal Finance

ISBN: 9780073530697

10th Edition

Authors: Jack Kapoor, Les Dlabay, Robert Hughes

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