Answered: Two years ago, you purchased 100 shares…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Two years ago, you purchased 100 shares of General Mills Corporation. Your purchase price was $59 a share, plus a total commission of $29 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.60 per share for the first year and $1.71 per share the second year. Also, assume that at the end of two years, you sold your General Mills stock for $66 a share minus a total commission of $38 to sell the stock. Calculate the dividend yield for your General Mills stock at the time you purchased it. Note: Enter your answer as a percent rounded to 2 decimal places. Calculate the dividend yield for your General Mills stock at the time you sold it. Note: Enter your answer as a percent rounded to 2 decimal places. Calculate the total return for your General Mills investment when you sold the stock at the end of two years. Note: Do not round intermediate calculations. Round your final answer to the nearest whole number. Calculate the annualized holding period yield for your General Mills investment at the end of the two-year period. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

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