EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 5, Problem 6PROB
Summary Introduction
The maximum
Here,
The initial stock price is
The ending stock price is
The dividend is D.
The number of outstanding shares is 200. The yearly stock price and dividends are as follows:
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Last year, Julie Johnson bought one share of common stock for $900. During the year, Julie received a $69.50 dividend. Earlier today, she sold the stock for $922.
What rate of return did Julie earn on her investment? Round your answer to two decimal places.
%
What were the dividend yield and the capital gains yield associated with holding the stock? Round your answers to two decimal places.
Dividend yield: %
Capital gains yield: %
Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received a $60.50 dividend. Earlier today, she sold the stock for $976.
What rate of return did Julie earn on her investment? Round your answer to two decimal places.
_______ %
What were the dividend yield and the capital gains yield associated with holding the stock? Round your answers to two decimal places.
Dividend yield: _______ %
Capital gains yield: _______ %
Tom bought a stock at $62.97 per share and sold it a year later for $75.28 per share. During the year, the stock paid dividends of $2.65 per share. What is the total return?
23.76%
19.87%
15.34%
16.35%
19.55%
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