You bought a stock one year ago for $48.31 per share and sold it today for $57.02 per share. It paid a $1.68 per share dividend today. If you assume that the stock fell $7.18 to $41.13 instead: a. Is your capital gain different? Why or why not? b. Is your dividend yield different? Why or why not? a. Is your capital gain different? Why or why not? (Select the best choice below.) A. The capital gain will be different because the dividend did not change. B. The capital gain will not be different because the selling price is less than the purchase price. C. The capital gain will not be different because the purchase price did not change. D. The capital gain will be different because the selling price has changed. b. Is your dividend yield different? Why or why not? (Select the best choice below.) A. The dividend yield will not be different because the selling price impacts dividend yield. B. The dividend yield will be different because the selling price impacts the dividend paid. C. The dividend yield will not be different because the dividend is the same and the change in selling price does not effect the dividend yield. O D. The dividend yield will be different because the selling price decreased.
You bought a stock one year ago for $48.31 per share and sold it today for $57.02 per share. It paid a $1.68 per share dividend today. If you assume that the stock fell $7.18 to $41.13 instead: a. Is your capital gain different? Why or why not? b. Is your dividend yield different? Why or why not? a. Is your capital gain different? Why or why not? (Select the best choice below.) A. The capital gain will be different because the dividend did not change. B. The capital gain will not be different because the selling price is less than the purchase price. C. The capital gain will not be different because the purchase price did not change. D. The capital gain will be different because the selling price has changed. b. Is your dividend yield different? Why or why not? (Select the best choice below.) A. The dividend yield will not be different because the selling price impacts dividend yield. B. The dividend yield will be different because the selling price impacts the dividend paid. C. The dividend yield will not be different because the dividend is the same and the change in selling price does not effect the dividend yield. O D. The dividend yield will be different because the selling price decreased.
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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8.
Transcribed Image Text:You bought a stock one year ago for $48.31 per share and sold it today for $57.02 per share. It
paid a $1.68 per share dividend today. If you assume that the stock fell $7.18 to $41.13
instead:
a. Is your capital gain different? Why or why not?
b. Is your dividend yield different? Why or why not?
a. Is your capital gain different? Why or why not? (Select the best choice below.)
A. The capital gain will be different because the dividend did not change.
B. The capital gain will not be different because the selling price is less than the purchase
price.
C. The capital gain will not be different because the purchase price did not change.
D. The capital gain will be different because the selling price has changed.
b. Is your dividend yield different? Why or why not? (Select the best choice below.)
O A. The dividend yield will not be different because the selling price impacts dividend yield.
B. The dividend yield will be different because the selling price impacts the dividend paid.
C. The dividend yield will not be different because the dividend is the same and the
change in selling price does not effect the dividend yield.
D. The dividend yield will be different because the selling price decreased.
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