What is the answer a b c d ? General Accounting You purchase one share of XYZ Corp for $60. You expect toreceive a dividend of $4 in one year. If you expect the price afterthe dividend is paid to be $85, calculate:a) The total return in dollarsb) The dividend yieldc) The capital gain rated) The total return rate

Step 1: Analysis of information givenFinal Price = $85Initial Price = $60Dividend = $4Step 2:…

Answered: You purchase one share of XYZ Corp for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You purchase one share of XYZ Corp for $60. You expect to receive a dividend of $4 in one year. If you expect the price after the dividend is paid to be $85, calculate: a) The total return in dollars b) The dividend yield c) The capital gain rate d) The total return rate