Answered step by step
Verified Expert Solution
Question
1 Approved Answer
$150,000 is used to buy 150,000 shares at $1.00 each. At the end of the first year, the share price has risen to $1.10 and
$150,000 is used to buy 150,000 shares at $1.00 each. At the end of the first year, the share price has risen to $1.10 and a dividend of $7,500 is received. What is the investors year-end dividend yield and return from dividends? answer choices
The return from dividends is 4.54% and the dividend yield is 5.00%.
The return from dividends is 15.00% and the dividend yield is 13.64%.
The return from dividends is 5.00% and the dividend yield is 4.54%.
The return from dividends is 13.64% and the dividend yield is 15.00%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started