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Earlier today, Stuart sold 200 shares of stock he owned. He purchased the stock three years ago for $28 per share. Following is a table
Earlier today, Stuart sold 200 shares of stock he owned. He purchased the stock three years ago for $28 per share. Following is a table that shows the market value of the stock at the end of each year and the amount of the dividend that Stuart received during the year:
YEAR | MARKET VALUE (PER SHARE) | DIVIDEND (PER SHARE) |
---|---|---|
1 | $26 | $0.60 |
2 | 28 | 0.60 |
3 | 32 | 0.60 |
(a) What total return (yield) did Stuart earn during the three-year period he held the stock? (b) What return did Stuart earn for each year he held the stock?
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