00:02
So in question one, we bought 100 shares of stock at the initial price of $73 per share.
00:13
And then at the end of the year, the share price is $82.
00:17
It pays a dividend of $0 .88 per share.
00:24
And at the end of the year, it is worth $82 at the end, the share price.
00:32
And it says, compute the total dollar return on this investment.
00:36
Investment.
00:38
So we know that you will get the, you have a hundred shares now at $82, plus you received 0 .88 times 100 at the end.
00:56
So this is $8200, plus you received $80 times this is $88.
01:04
So your total investment, you invested $7 ,300.
01:11
And you ended up with 8 ,200.
01:15
And so, let me see, i just made a little mistaken, writing that down.
01:22
Those need to be 88, don't they? and so, the amount that you gained is that difference, how much you gained, if i take that and subtract away the $7 ,300, you gained $988.
01:42
That was your gain.
01:49
Now, it says, that's the total dollar return on the investment.
01:56
And it says, does the answer change if you keep the stock instead of selling it? no, it stays the same.
02:03
Number two, it says, calculate the yield in the previous.
02:06
What is your capital gain yield? so we want to find the capital gain yield.
02:16
And we see that the capital gain yield is the amount that you are going to gain...