Question
Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was $39 a share, plus a total commission of $29 to purchase
Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was $39 a share, plus a total commission of $29 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.25 per share for the first year and $1.39 per share the second year. Also, assume that at the end of two years, you sold your Coca-Cola stock for $46 a share minus a total commission of $34 to sell the stock.
(a) Calculate the dividend yield for your Coca Cola stock at the time you purchased it
(b) Calculate the dividend yield for your Coca-Cola stock at the time you sold it.
(c) Calculate the total return for your Coca-Cola investment when you sold the stock at the end of two years.
(d) Calculate the annualized holding period yield for your Coca-Cola investment at the end of the two-year period.
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