Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

B D E F G H K Question 03 > Walmart's stock price was $115 on January 1, 2020 and $141 on September 30, 2020.

image text in transcribed
B D E F G H K Question 03 > Walmart's stock price was $115 on January 1, 2020 and $141 on September 30, 2020. Walmart paid $0.54 dividends on March 19, 2020, May 7, 2020, and August 13, 2020, respectively. If you bought one Walmart stock on January 1, 2020 and sold on September 30, 2020, then what is the total return? A B Ic D 21.20% 22.61% 24.02% 25.43% Hint: Equity Return Example . Buy a share of stock for $50, hold for 1 year, collect $1 dividend, and sell stock for $54 What were dividend yield, capital gain, and total return? (Ignore taxes) 8 9 20 21 22 Dividend yield: D/P, = 1/50 = 0.02 - 2% Capital gain: (P, -P)/P (54-50)/50 8% Total return: Div yield Cap gain = 2% +8% = 10% 23 24 or Total return Po = 0.10 - 10% 25 26 27 28 29 30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Energy Finance And Economics Analysis And Valuation Risk Management And The Future Of Energy

Authors: Betty Simkins, Russell Simkins

1st Edition

1118017129, 978-1118017128

More Books

Students also viewed these Finance questions

Question

c. Acafeteriawhere healthy, nutritionally balanced foods are served

Answered: 1 week ago

Question

c. What steps can you take to help eliminate the stress?

Answered: 1 week ago