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Bonus: Assume iX Nuts was a listed entity with a share price of $10/share and an investor acquired 1% of the company for $10,000. The
Bonus: Assume iX Nuts was a listed entity with a share price of $10/share and an investor acquired 1% of the company for $10,000. The company paid a dividend of $1 share per share at year-end and the share price had moved to $12/share. 1. What is the company's dividend yield? How would the investor have 2. accounted for the investment upfront and how would the change in investment be accounted for at year-end? 3. What could the investor do at year-end to safeguard his investment assuming all equity market instruments are available to him?
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