Albert Einstein purchased a stock last year and sold it today for $4 a share more than his purchase price. He received a total of $1.15 per share in dividends. Which one of the following statements is correct in relation to this investment? The capital gains yield is positive. The total dollar return per share is $2.85. The capital gain would have been less had Stacy not received the dividends. The dividend yield is expressed as a percentage of the par value. The dividend yield is greater than the capital gains yield.
Albert Einstein purchased a stock last year and sold it today for $4 a share more than his purchase price. He received a total of $1.15 per share in dividends. Which one of the following statements is correct in relation to this investment? The capital gains yield is positive. The total dollar return per share is $2.85. The capital gain would have been less had Stacy not received the dividends. The dividend yield is expressed as a percentage of the par value. The dividend yield is greater than the capital gains yield.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Albert Einstein purchased a stock last year and sold it today for $4 a share more than his purchase price. He received a total of $1.15 per share in dividends. Which one of the following statements is correct in relation to this investment?
-
The
capital gains yield is positive. -
The total dollar return per share is $2.85.
-
The capital gain would have been less had Stacy not received the dividends.
-
The dividend yield is expressed as a percentage of the par value.
-
The dividend yield is greater than the capital gains yield.
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