You just purchase a share of Apple for $150. You expect to receive a dividend of $12 in one year. If you expect the price after the dividend is paid to be $185, what total return will you have earned over the year? What was your dividend yield? What is your capital gain rate?
You just purchase a share of Apple for $150. You expect to receive a dividend of $12 in one year. If you expect the price after the dividend is paid to be $185, what total return will you have earned over the year? What was your dividend yield? What is your capital gain rate?
Chapter13: Other Financing Alternatives
Section: Chapter Questions
Problem 1aM
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Transcribed Image Text:You just purchase a share of Apple for $150.
You expect to receive a dividend of $12 in
one year. If you expect the price after the
dividend is paid to be $185, what total
return will you have earned over the year?
What was your dividend yield? What is your
capital gain rate?
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