Q 2.3. An investment costs $1,000 and pays a return of $1,050. What is its rate of return? Q 2.4. An investment costs $1,000 and a net ret of $25. is its rate of i Q 2.6. You buy a stock for $40 per share today. It will pay a dividend of $1 next month. If you can sell it for $45 right after the dividend is paid, what would be its dividend yield, what would be its capital gain (also quoted as a capital gain return? Co yield), and what would be its total rate of TV Tele ditts rate
Q 2.3. An investment costs $1,000 and pays a return of $1,050. What is its rate of return? Q 2.4. An investment costs $1,000 and a net ret of $25. is its rate of i Q 2.6. You buy a stock for $40 per share today. It will pay a dividend of $1 next month. If you can sell it for $45 right after the dividend is paid, what would be its dividend yield, what would be its capital gain (also quoted as a capital gain return? Co yield), and what would be its total rate of TV Tele ditts rate
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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Transcribed Image Text:Q 2.3. An investment costs $1,000 and pays a return of $1,050. What is its rate of return?
Q 2.4. An investment costs $1,000 and pays a net re
Q 2.6. You buy a stock for $40 per share today.
you can sell it for $45 right after the dividend is paid, what would be its dividend yield, what
would be its capital gain (also quoted as a capital gain yield), and what would be its total rate of
return?
It will
a dividend of $1 next month. If
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