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You purchased 700 shares of Itzy Company at a price of $23.00 per share. Itzy Company has paid $2.20 per share in dividends. The current

  1. You purchased 700 shares of Itzy Company at a price of $23.00 per share. Itzy Company has paid $2.20 per share in dividends. The current price of Itzy Company stock is $19.40 per share.
    1. Calculate the dividend yield [not the expected dividend yield].
    2. Calculate the capital gains yield: Assuming you sell your stock.
    3. Calculate the capital gains yield: Assuming you do not sell your stock.
    4. Assuming you sell your stock, calculate the total overall yield.
    5. Assuming the overall yield is 8% (it is not). Calculate your effective annual return assuming your holding period was 3 months.
    6. Assuming the overall yield is 8% (it is not). Calculate your effective annual return assuming your holding period was 3 years.

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