Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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= ___ %

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

Secured Finance Transactions

Authors: Dominic RM Griffiths

2nd Edition

1787425142, 978-1787425149

More Books

Students also viewed these Finance questions

Question

Write a short note on rancidity and corrosiveness.

Answered: 1 week ago