Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You bought a stock one year ago for $50.77 per share and sold it today for $58.07 per share. It paid a $1.29 per share

You bought a stock one year ago for $50.77 per share and sold it today for $58.07 per share. It paid a $1.29 per share dividend today. If you assume that the stock fell $7.45 to $43.32 instead: a. Is your capital gain different? Why or why not? b. Is your dividend yield different? Why or why not?

a. Is your capital gain different? Why or why not?(Select the best choice below.)

The capital gain will not be different because the selling price is less than the purchase price.

The capital gain will be different because the selling price has changed.

The capital gain will be different because the dividend did not change.

The capital gain will not be different because the purchase price did not change.

b. Is your dividend yield different? Why or why not(Select the best choice below.)

The dividend yield will not be different because the selling price impacts dividend yield.

The dividend yield will not be different because the dividend is the same and the change in selling price does not effect the dividend yield.

The dividend yield will be different because the selling price impacts the dividend paid.

The dividend yield will be different because the selling price decreased.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Financial Institutions Management

Authors: Anthony Saunders

3rd Edition

007303259X, 978-0073032597

More Books

Students also viewed these Finance questions

Question

gpt 7 5 9 .

Answered: 1 week ago

Question

General Purpose of Your Speech Analyzing Your Audience

Answered: 1 week ago

Question

Ethical Speaking: Taking Responsibility for Your Speech?

Answered: 1 week ago