You purchase 100 shares of COST for $280 per share. Three months later, you sell the stock for $290 per share. You receive a dividend of $0.57 a share. What are your dividend yield, capital gain yield, and total percentage return?

You purchase 100 shares of COST for $280 per share. Three months later, you sell the stock for $290 per share. You receive a dividend of $0.57 a share. What are your dividend yield, capital gain yield, and total percentage return?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: One year ago, you purchased 37 shares of a stock at a price of $12.94 a share. The stock pays an…

A: The total dollar return on an investment consists of 2 parts: (i) Income from dividends and (ii)…

Q: One year ago, you purchased a stock at a price of $28.75. The stock pays quarterly dividends of $.35…

A: The objective of this question is to calculate the total capital gains from the investment in a…

Q: You purchased a stock at a price of $22. A year later the stock is worth $35, and during the year…

A: Hence, return on the investment is $14.5.Return on investment is calculated by adding capital…

Q: You purchase 200 shares for $50 a share, and after a year the price rises to $70. What is…

A: Hence, the question has been solved in detailed explanation manner.Explanation:The breakdown of your…

Q: You buy a stock for $125, receive a dividend of $12 and sell the stock for $95 one year…

A: Dollar return =Closing price - Opening price + Dividend Dollar return = $95 - $125 + $12 Dollar…

Q: An investor purchased 50 shares of stock in a company for $20 per share. One year later, the…

A: In this question we need to calculate the investor's rate of return:

Q: You are thinking of purchasing a cumulative, convertible preferred share with a stated dividend of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You purchase a stock for $1000 and expect to sell it for $900 after five years but also expect to…

A: The rate of return that an investor is earning from a particular investment in a particular time…

Q: You purchased a share of stock for $20. One year later you received a $1 dividend and sold the share…

A: Holding period return (HPR) is the return that is earned on the asset by holding it over a period of…

Q: 150 shares for $70 a share ($10,500), and after

A: To calculate the percentage return on your investment when buying stock on margin, you can use the…

Q: Suppose you bought 200 shares of stock at an initial price of $57 per share. The stock paid a…

A: Capital gains yield is a measure of the return on an investment that is based solely on the increase…

Q: What is your holding period return if: a. You sell the stock for $44. b. You sell the stock for…

A: The holding period return (HPR) evaluates an investment's performance throughout the course of its…

Q: The Moreau Corporation is paying an annual dividend of $0.65 per share. If the price of a share of…

A: Given information: Annual dividend is $0.65 per share, Price of a share of the stock is $81.25

Q: You bought 1,000 shares of Oracle stock last year for $82, you received a $5 per share divided…

A: The total cost of the investment is the number of shares bought multiplied by the purchase price per…

Q: An investor purchased stock for $1000. His dividends in the first five years were: $140, $150, $170,…

A: The calculation of the rate of return as follows:

Q: One year ago, you bought a stock for $57.04 a share. You received a dividend of $2.61 per share last…

A: Capital gains yield is the return arising due to increase in stock price in investment…

Q: You invest in Sandhill Corp. stock at a price of $63.50 per share. At the end of one year, you sell…

A: The return on investment can be computed as income earned on one share divide by market price per…

Q: What was your realized return?

A: The realized return refers to the actual profit or loss that an investor has experienced over a…

Q: You bought a stock at $90 last year. After one year, you received a dividend of $5.00, and then sold…

A: Rate of Return on Investment = ( Sell Price - Purchase Price + Dividend Received ) / Purchase Price…

Q: Last year you bought 100 shares of National Corporation common stock for P53 per share. During the…

A: The rate of return earned over the year is calculated as capital gain yield plus the dividend yield

Q: share. Calculate the investor's: a. Income b. Capital gain c. Total dollar return

A: a. Calculation of Income:Dividend received during the year will be the income for the investor which…

Q: You purchase Griffin ltd at $46.00 per share intend to hold it for a year and hope to sell, it at…

A: The rate of return that an investor is expected to earn from the investment is term as the expected…

Q: You purchased 100 shares of stock at $30 per share. You paid a 2% commission on the purchase. In…

A: Current yield in the rate of return earned in the current transaction. Annual yield is the rate of…

Q: What is the “total return” on your investment? (remember, total return is more than ju

A: Purchase price=$10 selling price $11 dividend paid $1

Q: You purchased 100 shares of stock for a share price of $16.11. You sold the stock two years later…

A: The total gain or loss on an investment for a particular period of time is known as the total rate…

Q: You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now,…

A: IRR is the break-even rate of return at which the present value of cash flow is equal to the initial…

Q: You own 450 shares of Maslyn Tours stock that sells for $58.06 per share. If the stock has a…

A: We need to use dividend yield formula to calculate dividend par shares. Dividend yield =Dividend par…

Q: You invest $5,062 in stock and receive $68, $75, $93, and $95 in dividends over the following 4…

A: IRR of an investment is the return generated by the investment. IRR indicates the profitability of…

Q: You bought a stock one year ago for $60 per share and sold it today for $65 per share. It paid a $2…

A: Realized return refers to the return that is being earned by the stockholders over the investment…

Q: One year ago, you purchased 21 shares of a stock at a price of $12.18 a share. The stock pays an…

A: Total dollar return includes:The capital gain earned on the investment due to increase in price of…

Q: Last year, Julie Johnson bought one share of common stock for $900. During the year, Julie received…

A: Purchasing price of common stock is $900 Dividend received during holding is $69.50 Selling price of…

Q: Suppose you purchased a stock a year ago. Today, you receive a dividend of $12 and you sell the…

A: given, Dividend = $ 12 Sale value = $ 111 Return = 8% Let Purchase value be 'x' Capital gain…

Q: Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy…

A: The interest rate at which banks and other financial organizations lend and borrow money from one…

Q: You buy a share on 1 January for $35.18 and sell it on 31 December for $41.38. During the year you…

A: The term shares refer to the equity shares that are issued by the companies to raise capital from…

Q: Last year you bought 100 shares of NC Corp. common stock for P53 per share. During the year you…

A: The rate of return is simply calculated as capital gain yield plus dividend yield

Q: A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per…

A: The dividend yield is the percentage ratio that tells us about how much dividend a company is paying…

Q: You purchased a stock at a price of $70.72. The stock paid a dividend of $2.03 per share and the…

A: Purchase price of stock = $ 70.72 Price of stock after 1 year = $ 63.02

Q: You purchased 100 shares of stock for a share price of $16.14. You sold the stor two years later for…

A: Total return on investment = Total capital gains + Total dividend received.capital gains per share =…

Q: You bought a share for $1.89 exactly one year ago. The current share price is $1.12. The share paid…

A: Purchase price (P0) = $1.89 Price after 1 year (P1) = $1.12 Dividend (D) = 0.13

Q: Sammy’s Treats’ stock is trading at $50 and also pays an annual dividend of $2 per share. How much…

A: The dividend amount that is paid to the investors by the company, represented in percentage form is…

Question

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Calculating the requred part.

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

You originally purchased Hershey stock at $161. It paid a dividend of $3.00 in the last year. Currently, the stock is selling for $156 per share. What is your total return if you sell the stock today?
An investor receives an 15 percent total return by purchasing a stock and selling it after one year with a 10 percent capital gain. The dividend income during the year is $4. What is the price of the stock currently?
You invested in stock for which you paid $8,750. You have had the stock for one year. What is the rate of return if the stock increases in value by $950 and pays an annual dividend of $25?
Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy 700 shares of stock at $61 per share. You put up $27,755. One year later, the stock is selling for $75 per share and you close out your position. What is your return assuming a dividend of $0.90 per share is paid?
Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a dividend of $0.46 per share during the following year, and the share price at the end of the year was $50. Compute your total dollar return on this investment.
You bought a stock one year ago for $48.47 per share and sold it today for $57.18 per share. It paid a $1.46 per share dividend today. What was your realized return? The realized return was %. (Round to one decimal place.)
You own 1,000 shares of stock in Avondale Corp. You will receive a $.80 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $45 per share. The required return on Avondale stock is 10 percent. a. What is the current share price of your stock (ignoring taxes)? b. If you would rather have equal dividends in each of the next two years by creating homemade dividends, what would be the cash flow for Year 1 and Year 2?
Eight months ago, you purchased 400 shares of AAA stock for $46.40 a Share. The company pays quarterly dividends of $1.05 a share. Today, you sold all of Your shares are for $48.30 a share. What is your total percentage return on this Investment? What is your total dollar return on this investment? Briefly discuss.
One year ago, you purchased 454 shares of stock for $28.98 a share. The stock pays $1.02 a share in dividends each year. Today, you sold your shares for $25 a share. What is your total dollar return on this investment? Answer to two decimals
You sell a stock for $50.00 that was held for 10 years. You earned a return of 8%. What was the original cost of the stock?
You bought a stock one year ago for $49.54 per share and sold it today for $59.36 per share. It paid a $1.29 per share dividend today. What was your realized return? The realized return was %. (Round to one decimal place.)