The rate of return on an investment is the profit or loss on yields of investment which are gained by an investor. Yield = ( Current price − Purchase price ) + ( Number of dividends × Dividend per share ) Purchase price The number of shares to be purchased is 1,050 at $42 each. The current price per share is $44 and the dividend payments per share is $0.05 to be received 2 times.

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Chapter 5, Problem 3PROB

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=(Current price−Purchase price)+(Number of dividends×Dividend per share)Purchase price

The number of shares to be purchased is 1,050 at $42 each. The current price per share is $44 and the dividend payments per share is $0.05 to be received 2 times.

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