Question
Suppose you bought 200 shares of stock at an initial price of $49 per share. The stock paid a dividend of $.50 per share during
Suppose you bought 200 shares of stock at an initial price of $49 per share. The stock paid a dividend of $.50 per share during the following year, and the share price at the end of the year was $52.
a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
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. Omit the "%" sign in your response.)
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. Omit the"%"sign in your response.)
Total rate of return= ___ %
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