Question
Suppose you bought 500 shares of stock at an initial price of $41 per share. The stock paid a dividend of $.36 per share during
| Suppose you bought 500 shares of stock at an initial price of $41 per share. The stock paid a dividend of $.36 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? |
| Capital gains yield | % |
| b. | What is the dividend yield? |
| Dividend yield | % |
| c. | What is the total rate of return on the investment? |
| Total rate of return |
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Applied Quantitative Finance
Authors: W.; T. Kleinkow; G. Stahl Hardle
1st Edition
3540434607, 978-3540434603
