Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you bought 850 shares of stock at an initial price of $53 per share. The stock paid a dividend of $60 per share during

image text in transcribed
image text in transcribed
Suppose you bought 850 shares of stock at an initial price of $53 per share. The stock paid a dividend of $60 per share during the following year, and the share price at the end of the year was $48 a. Compute your total dollar return on this investment. (A negative value should be indicated by a minus sign.) b. What is the capital gains yieid? (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.) c. What is the dividend yleld? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) 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.)

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

Students also viewed these Finance questions