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Question 10 Consider the following price and dividend data for Tata Motors: Not yet answered Date Price ($) Dividend ($) Marked out of December 31,
Question 10 Consider the following price and dividend data for Tata Motors: Not yet answered Date Price ($) Dividend ($) Marked out of December 31, 2013 157.4 5.00 January 27, 2014 144.5 1.2 P Flag question April 29, 2014 3101.4 21.0 July 30, 2014 3117.4 31.1 October 29, 2014 390.2 1.3 December 30, 2014 187.2 (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) (C) 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)
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