Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you bought 800 shares of stock at an initial price of $43 per share. The stock paid a dividend of $.40 per share during

image text in transcribed
Suppose you bought 800 shares of stock at an initial price of $43 per share. The stock paid a dividend of $.40 per share during the following year, and the share price at the end of the year was $38. a. Compute your total dollar return on this investment. (Negative amount should be Indicated by a minus sign. Omit the"$" sign in your response.) Dollar return $ b. What is the capital gains yield? (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. Omit the "%" sign in your response.) 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. Omit the "%" sign in your response.) Dividend yield % d. What is the total rate of return on the investment? (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. 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 with AI-Powered 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

Practicing Statistics Guided Investigations For The Second Course

Authors: Shonda Kuiper, Jeff Sklar

1st Edition

9780321586018

Students also viewed these Finance questions