7-1 One One year ago, James Sirlank bought Dell Computer common stock for $20 per share. Today the stock is selling for $19 per share. During the year, James received four dividend payments, each in the amount of $0.20 per share. (a) What rate of return did James earn during the year? (b) What were the (1) dividend yield and (2) the capital gains yield associated with the stock for the year?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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7-1
One
One year ago, James Sirlank bought Dell Computer common stock for $20 per
share. Today the stock is selling for $19 per share. During the year, James received four
dividend payments, each in the amount of $0.20 per share. (a) What rate of return did
James earn during the year? (b) What were the (1) dividend yield and (2) the capital gains
yield associated with the stock for the year?
Transcribed Image Text:7-1 One One year ago, James Sirlank bought Dell Computer common stock for $20 per share. Today the stock is selling for $19 per share. During the year, James received four dividend payments, each in the amount of $0.20 per share. (a) What rate of return did James earn during the year? (b) What were the (1) dividend yield and (2) the capital gains yield associated with the stock for the year?
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