Chapter 13 Financial Planning Exercise 7 Calculating approximate yield on mutual fund About a year ago, Elliot Cox bought some shares in the Axis Fund. He bought the fund at $24.50 a share, and it now trades at $26.00. Last year, the fund paid dividends of 40 cents a share and had capital gains distributions of $1.83 a share. Using the approximate yield formula, what rate of return did Elliot earn on his investment? Round the answer to two decimal places. % Repeat the calculation using a financial calculator. Round the answer to two decimal places. % Would he have made a 20% rate of return if the stock had risen to $30 a share? -Select-YesNo
Chapter 13 Financial Planning Exercise 7 Calculating approximate yield on mutual fund About a year ago, Elliot Cox bought some shares in the Axis Fund. He bought the fund at $24.50 a share, and it now trades at $26.00. Last year, the fund paid dividends of 40 cents a share and had capital gains distributions of $1.83 a share. Using the approximate yield formula, what rate of return did Elliot earn on his investment? Round the answer to two decimal places. % Repeat the calculation using a financial calculator. Round the answer to two decimal places. % Would he have made a 20% rate of return if the stock had risen to $30 a share? -Select-YesNo
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 7FPE
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Chapter 13
Financial Planning Exercise 7
Calculating approximate yield on mutual fund
About a year ago, Elliot Cox bought some shares in the Axis Fund. He bought the fund at $24.50 a share, and it now trades at $26.00. Last year, the fund paid dividends of 40 cents a share and had
- Using the approximate yield formula, what
rate of return did Elliot earn on his investment? Round the answer to two decimal places.
% - Repeat the calculation using a financial calculator. Round the answer to two decimal places.
% - Would he have made a 20% rate of return if the stock had risen to $30 a share?
-Select-YesNo
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