Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following price and dividend data for Ford Motor Company: Date Price ($) Dividend ($) December 31, 2004 $14.54 January 26, 2005 $13.13 $0.12
Consider the following price and dividend data for Ford Motor Company:
Date | Price ($) | Dividend ($) |
December 31, 2004 | $14.54 | |
January 26, 2005 | $13.13 | $0.12 |
April 28, 2005 | $9.14 | $0.12 |
July 29, 2005 | $10.74 | $0.12 |
October 28, 2005 | $8.02 | $0.12 |
December 30, 2005 | $7.72 |
Assume that you purchased Ford Motor Company stock at the closing price on December 31, 2004 and sold it after the dividend had been paid at the closing price on January 26, 2005. Your capital gains rate (yield) for this period is closestto:
A.
0.91%
B.
0.83%
C.
8.87%
D.
9.7%
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