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 outstanding shares is 1,000 sold for $45 each. Two years ago, the purchase price per share is $50. The quarterly dividend is $0.50.

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Chapter 5, Problem 5PROB

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 outstanding shares is 1,000 sold for $45 each. Two years ago, the purchase price per share is $50. The quarterly dividend is $0.50.

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