Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me to solve this question! Question 6 Not yet answered Marked out of 5.00 F Flag question Consider the following price and dividend

image text in transcribed

Please help me to solve this question!

image text in transcribed
Question 6 Not yet answered Marked out of 5.00 F Flag question Consider the following price and dividend data for Tata Motors: Date Price ($) Dividend ($) December 31,2013 157.4 January 27, 2014 144.5 :(1.2 April 29,2014 101.4 ?1.0 July 30, 2014 117.4 ?1.1 October 29, 2014 3.90.2 ?1.3 December 30,2014 872 (A) Assume that you purchased Tata Motors stock at the closing price on December 31, 2013 and sold it after the dividend had been paid at the closing price on January 27, 2014. What is your dividend yield for this period? You need to show your calculations. (1 mark). (B) Assume that you purchased Tata Motors stock at the closing price on December 31, 2013 and sold it after the dividend had been paid at the closing price on January 27, 2014. What is your capital gains rate (yield) for this period? You need to show your calculations. (1 mark) (0) Assume that you purchased Tata Motors stock at the closing price on December 31, 2013 and sold it after the dividend had been paid at the closing price on January 27, 2014. What is your total return rate (yield) for this period? You need to show your calculations. (1 mark) (D) Assume that you purchased Tata Motors stock at the closing price on December 31, 2013 and sold it at the closing price on December 30, 2014. What is your realized annual return for the year 2014? You need to show your calculations. (2 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Management And Cost Accounting

Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan

7th Edition

1292232668, 978-1292232669

Students also viewed these Finance questions