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A company has issued 100,000 shares of stock and they are actively traded on the secondary market. At the close of day 1, a particular
A company has issued 100,000 shares of stock and they are actively traded on the secondary market. At the close of day 1, a particular stock is traded at $40 per share. Then, at the close of the 252nd trading day later (which is exactly one calendar year forward), the stock traded at $43 per share. Also, during the year, the stock delivered a Dividend of $0.70 per share. The company as a whole had sales for the year of $2.5 million and its profit margin was 8 percent.
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- What is the market capitalization of this company as of the close of Day 1?
- What is the total return of the equity in the company as of the End of the Calendar Year?
- What is the dividend yield for the entire year?
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