Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 1-2 Calculating Yields (LO1, CFA1) Suppose you bought 400 shares of stock at an initial price of $40 per share. The stock paid a

image text in transcribed

Problem 1-2 Calculating Yields (LO1, CFA1) Suppose you bought 400 shares of stock at an initial price of $40 per share. The stock paid a dividend of $.34 per share during the following year, and the share price at the end of the year was $42. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Capital gains yield % b. What is the dividend yield?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Dividend yield % c. What is the total rate of return on the investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Total rate of return %

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

Personal Finance

Authors: Jack R Kapoor, Glencoe McGraw Hill, Les R Dlabay, Robert J Hughes

1st Edition

0078698006, 9780078698002

More Books

Students also viewed these Finance questions

Question

a score of 70 or higher on the test?

Answered: 1 week ago