Question

R(20) = [(20 - 1)/29]10.7% + [(30 - 20) /29]12.8% = 11.41% Questions for practice 1. You bought 100 shares of stock at an initial price of $73 per share. The stock paid a dividend of $0.88 per share during the following year, and the share price at the end of the year was $82. Compute your total dollar return on this investment. Does your answer change if you keep the stock instead of selling it? Why or why not? 2. Calculating Yields in the previous problem, what is the capital gains yield? The dividend yield? What is the total rate of return on the investment? 3. Calculating Returns Rework Problems 1 and 2 assuming that you buy 750 shares of the stock and the ending share price is $68.40.

          R(20) = [(20 - 1)/29]*10.7% + [(30 - 20) /29]*12.8% = 11.41%
Questions for practice
1. You bought 100 shares of stock at an initial price of $73 per share. The stock paid a dividend of $0.88 per share during the following year, and the share price at the end of the year was $82. Compute your total dollar return on this investment. Does your answer change if you keep the stock instead of selling it?
Why or why not?
2. Calculating Yields in the previous problem, what is the capital gains yield? The dividend yield? What is the total rate of return on the investment?
3. Calculating Returns Rework Problems 1 and 2 assuming that you buy 750 shares of the stock and the ending share price is $68.40.

R(20) = [(20 - 1)/29]*10.7% + [(30 - 20) /29]*12.8% = 11.41%
Questions for practice
1. You bought 100 shares of stock at an initial price of 73 per share. The stock paid a dividend of0.88 per share during the following year, and the share price at the end of the year was 82. Compute your total dollar return on this investment. Does your answer change if you keep the stock instead of selling it?
Why or why not?
2. Calculating Yields in the previous problem, what is the capital gains yield? The dividend yield? What is the total rate of return on the investment?
3. Calculating Returns Rework Problems 1 and 2 assuming that you buy 750 shares of the stock and the ending share price is68.40.

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