You purchased 90 shares of a common stock on August 1, 2023 for $60.00 per share and held it until October 1, 2023, when you sold it for $63.50 per share. During that period you received one dividend of $5.00 per share. Calculate the annualized yield.

You purchased 90 shares of a common stock on August 1, 2023 for $60.00 per share and held it until October 1, 2023, when you sold it for $63.50 per share. During that period you received one dividend of $5.00 per share. Calculate the annualized yield.

Name: You purchased 90 shares of a common stock on August 1, 2023 for $60.00
Uploaded: 2024-03-20T06:51:32.000Z
Channel: Bartleby
Description: You purchased 90 shares of a common stock on August 1, 2023 for $60.00 per share and held it until October 1, 2023, when you sold it for $63.50 per share. During that period you received one dividend of $5.00 per share. Calculate the annualized yield

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 8P

See similar textbooks

Similar questions

You bought a stock at the beginning of the year for $986 per share. At the end of the year, the price is $905. At the end of the year, you received a $7.50 dividend per share. What are the dividend yield, capital gains yield, and total percentage return?
You purchased 50 shares of Z stock in January 2022 for $40 per share. Each year you received a cash dividend of $0.75 per share. In December of 2026, you sold 50 shares of Z for $60 per share. Brokerage fees amounted to 3.0% of the purchase price and 3.0% of the sales proceeds. What is your total cumulative return (in percent) over the investment period? 51.26% 50.36% 44.87% 48.73%
You purchased 300 shares of BFF stock in January 2009 for $52 per share. Each year you received a cash dividend of .45 cents per share. In December 2018, you sold all 300 shares for $67 per share. What is the total holding period return in dollars over the investment period?
You purchased some shares in Bandicoots R Us on 19 July 2022, at price $50.58. On 25 December 2022 (159 days later), Bandicoots R Us paid a dividend of $1.50. The price of the shares on 25 December 2022 was $49.60. Finally, on 22 March 2023 (87 days after the dividend), you sold the shares for $48.63. What was your effective annual return over the time you owned Bandicoots R Us? -1.32% -5.67% 2.38% -0.89%
You purchased some shares in Bandicoots R Us on 25 October 2022, at price $68.29. On 09 April 2023 (166 days later), Bandicoots R Us paid a dividend of $2.14. The price of the shares on 09 April 2023 was $67.29. Finally, on 24 July 2023 (106 days after the dividend), you sold the shares for $66.45. What was your effective annual return over the time you owned Bandicoots R Us?
You purchased some shares in Bandicoots R Us on 23 March 2022, at price $68.37. On 16 September 2022 (177 days later), Bandicoots R Us paid a dividend of $2.53. The price of the shares on 16 September 2022 was $67.41. Finally, on 23 October 2022 (37 days after the dividend), you sold the shares for $66.48. What was your effective annual return over the time you owned Bandicoots R Us?
An investor purchases a stock for $50 and over the next year, receives a $0.75 dividend. At the end of the year, the stock is priced at $53. In the second year, the stock pays a $1.00 dividend and at the end of the year the stock is priced at $51. a. Compute the dollar return for each year. b. Compute the percentage return for each year.
You buy a share of The Ludwig Corporation stock for $19.80. You expect it to pay dividends of $1.02, $1.0863, and $1.1569 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $23.92 at the end of 3 years. Calculate the growth rate in dividends. Round your answer to two decimal places. % Calculate the expected dividend yield. Round your answer to two decimal places. % Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places.
Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $46.50. At the end of year 1, you receive a dividend of $2, and buy one more share for $50.50. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $58.50 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.)
You own 100 shares of XYZ common stock. XYZ’s quarterly dividend is $1.00 per share. What is the amount of the dividend check you can expect to receive for this year?
You purchase 100 shares of stock for $25 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment if the end-of-year stock price is (i) $23; (ii) $25; (iii) $26? What is your real (inflation-adjusted) rate of return if the inflation rate is 5%? (i) $23 (ii) $25 (iii) $26
You purchased 200 shares of preferred stock on January 1 for $14.36 per share. The stock pays an annual dividend of $1.26 per share. On December 31, the market price is $16.69 per share. What is your percent return for the year if you hold on to the stock? The correct answer is 25%. How was that found? Please do not answer in Excel format