EBK CFIN
EBK CFIN
5th Edition
ISBN: 9781305888036
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 5, Problem 2PROB
Summary Introduction

The rate of return on an investment is the profit or loss on yields of investment which are gained by an investor.

Yield=[(No. of shares×Current price per share)(No. of shares×Original price per share)]+(No. of shares×Dividend per share)(No. of shares×Original price per share)

The number of shares to be purchased is 40 at $10 each. The current price per share is $9 and the dividend payments per share is $0.50.

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