Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose you bought 650 shares of stock at an initial price of $51 per share. The stock paid a dividend of $0.56 per share during
Suppose you bought 650 shares of stock at an initial price of $51 per share. The stock paid a dividend of $0.56 per share during the following year, and the share price at the end of the year was $46. |
a. | Compute your total dollar return on this investment. (Negative amounts should be indicated by a minus sign. Omit the"$" sign in your response.) |
Dollar return | $ |
b. | What is the capital gains yield? (Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
Capital gains yield | % |
c. | What is the dividend yield? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
Dividend yield | % |
d. | What is the total rate of return on the investment? (Negative amounts should be indicated by a minus sign. Round your answer 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started