Question
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
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. 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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