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The rate of return, or yield, is the total return on an investment expressed as a percentage of its purchase price. The rate of return

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The rate of return, or yield, is the total return on an investment expressed as a percentage of its purchase price. The rate of return is usually stated on an annualized basis. For example, if you have an investment worth $1,000 that yields $120 of total return per year, then the investment would have a 12% annual rate of return (or yield). Consider the following example: Layla has purchased 100 shares of Z&F Corporation stock at a purchase price of $35 per share. Over the next year, zaF Corporation pays a total of $5 per share in dividends to its shareholders. At the end of the year, Layla seils her z&F Corporation stock for $39 per share. In addition, Layla paida transaction cost of $1 per share both at the time of purchase and at the time of sale. Part A-Current Income (Dividends): Over the year that Layla owns her shares of Z&F Corporation stock, she receives a total of $ 500 in current income in the form of dividends. Part B-Capital Gains: The total amount that Layla has paid for her Z&F Corporation stock is $ The total amount of mondy that Layla receives after selling her shares of Z&F Corporation stock is $ ). Therefore, Layla's Investment achieves a capital gain or $ Part c-Total Return: Over the year that she owns the Z&F Corporation stock, Layla ears a total return of s Part D-Rate of Return (Yield): The rate of return on an investment is the total return on the investment expressed as a percentage of its price. Calculate the rate of return by dividing the total return by the total purchase price (not including transaction costs because these are already taken into account in the capital gains portion of the total return), Round your rate of return to two decimal places. Therefore, the In the example given, the total return is $ and the total purchase price (excluding transaction costs) is $ rate of return on Layla's investment in Z&F Corporation stock is %

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