The firm of Sun and Moon purchased a share of ABC.com common stock exactly one yearago for Rs. 45. During the past year the common stock paid an annual dividend ofRs. 2.40. The firm sold the security today for Rs. 85. What is the rate of returnthe firm has earned?А.5.3%В.194.2%С.94.2%D.None

Given, Buying price = Rs. 45 Selling price = Rs. 85 Dividend per share = Rs. 2.40

OT 1oon nased a share Of ABC. com commo stock e For Rs. 45. During the past year the common stock paid an annual 2.40. The firm sold the security today for Rs. 85. What is the r Firm has earned? 5.3% 194.2% 94.2%

OT 1oon nased a share Of ABC. com commo stock e For Rs. 45. During the past year the common stock paid an annual 2.40. The firm sold the security today for Rs. 85. What is the r Firm has earned? 5.3% 194.2% 94.2%

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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Question

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The firm of Sun and Moon purchased a share of ABC.com common stock exactly one year
ago for Rs. 45. During the past year the common stock paid an annual dividend of
Rs. 2.40. The firm sold the security today for Rs. 85. What is the rate of return
the firm has earned?
А.
5.3%
В.
194.2%
С.
94.2%
D.
None

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