Question: You bought a stock one year ago for $ 4 8 . 2 2 per share and sold it today for $ 5 5 .
You bought a stock one year ago for $ per share and sold it today for $ per share. It paid a $
per share dividend today. If you assume that the stock fell $ to $ instead:
a Is your capital gain different? Why or why not?
b Is your dividend yield different? Why or why not?
Part
a Is your capital gain different? Why or why not?Select the best choice below.
st choice below.
AThe capital gain will not be different because the selling price is less than the purchase price.
BThe capital gain will not be different because the purchase price did not change.
CThe capital gain will be different because the selling price has changed.
DThe capital gain will be different because the dividend did not change.
Part
b Is your dividend yield different? Why or why not?Select the best choice below.
AThe dividend yield will be different because the selling price impacts the dividend paid.
BThe dividend yield will be different because the selling price decreased.
CThe dividend yield will not be different because the selling price impacts dividend yield.
DThe dividend yield will not be different because the dividend is the same and the change in selling price does not effect the dividend yield.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
