EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 5, Problem 3PROB
Summary Introduction
The rate of
The number of shares to be purchased is 1,050 at $42 each. The current price per share is $44 and the dividend payments per share is $0.05 to be received 2 times.
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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?
This morning Sophia sold 500 shares of Multiface Consulting for $75.60 per share. She purchased the stock for $70 one year ago. During the time she held the stock, Sophia received two dividend payments; one dividend payment was $1.00 per share and the other dividend payment was $1.10 per share. What yield (rate of return) did Sophia earn on her investment for the year she held the Multiface stock?
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