Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you bought 650 shares of stock at an initial price of $48 per share. The stock paid a dividend of $.50 per share during

Suppose you bought 650 shares of stock at an initial price of $48 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 $43.

a. Compute your total dollar return on this investment. (A negative value should be indicated by a minus sign.)

Dollar return:

b. What is the capital gains yield? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Capital Gains Yield:

c. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Dividend Yield:

d. What is the total rate of return on the investment? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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

Basic Finance An Introduction To Financial Institutions Investments And Management

Authors: Herbert B. Mayo, Michael J Lavelle

13th Edition

0357714741, 978-0357714744

More Books

Students also viewed these Finance questions