CFIN (with Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
5th Edition
ISBN: 9781305661653
Author: Scott Besley, Eugene Brigham
Publisher: Cengage Learning
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Question
Chapter 5, Problem 1PROB
Summary Introduction
T sold 1,000 shares at $29 each which were purchased one year ago at $28 each. T received a quarterly dividend of $0.10 per share during the year.
Yield is the return realized and earned on an investment over a specified period.
Expert Solution & Answer
Explanation of Solution
Calculate the yield as follows:
Therefore, the yield is
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Students have asked these similar questions
"Yesterday travis sold 1,000 shares of stock that he owned for $29 per share. travis purchased the stock one year ago for $28 per share. During the year, travis received a quarterly dividend equal to $0.10 per share. What return (yield) did travis earn during the time he owned the stock? "
Kevin owns 1 share of Acme, Inc. stock. He purchased the
stock three years ago for $27. The stock is currently
trading for $29.50 per share. The stock has paid the
following dividends over the past three years. Year 1) S
1.50 Year 2) $2.00 Year 3) $2.50 What is the compounded
rate of return (IRR) that Kevin has earned on this
investment?
One year ago, Regina purchased $1,050 worth of Elite Electrician’s common stock for $42 per share. During the year, Regina received two dividend payments, each equal to $0.05 per share. The current market value of the stock is $44 per share. What yield did Regina earn on her investment during the year?
Chapter 5 Solutions
CFIN (with Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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