Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received a $47.50 dividend. Earlier today, she sold the stock for $988. (a) What rate of return did Julie earn on her investment? (b) What were the (1) dividend yield and (2) the capital gains yield associated with holding the stock? 7-2 5 minutes -5pages leff

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
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Last year, Julie Johnson bought one share of common stock for $950. During the
year, Julie received a $47.50 dividend. Earlier today, she sold the stock for $988. (a) What
rate of return did Julie earn on her investment? (b) What were the (1) dividend yield and
(2) the capital gains yield associated with holding the stock?
7-2
5 minutes -5pages leff
Transcribed Image Text:Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received a $47.50 dividend. Earlier today, she sold the stock for $988. (a) What rate of return did Julie earn on her investment? (b) What were the (1) dividend yield and (2) the capital gains yield associated with holding the stock? 7-2 5 minutes -5pages leff
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