You purchased 440 shares of stock at a price of $50.16 per share. Over the last

Question

You purchased 440 shares of stock at a price of $50.16 per share. Over the last year, you have received total dividend income of $505. What is the dividend yield? A stock has had returns of 6 percent, 24 percent, 16 percent, -12 percent, 31 percent, and -6 percent over the last six years. What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and round your final answers to 2 decimal places, (e.g., 32.16)) You purchased 300 shares of stock at a price of $39.12 per share. Over the last year, you have received total dividend income of $330. What is the dividend yield?

Explanation / Answer

10) Dividend Yield = Total Dividend/Total amount invested

Dividend Yield =505/(440*50.16)

Dividend Yield = 2.3%

Answer

E) 2.3%

9)

Arithmetic Return = (6+24 + 16 -12 + 31 - 6)/6

Arithmetic Return = 9.83%

Geometric Return =( (1+6%)*(1+24%)*(1 + 16%)*(1 -12%)*(1 + 31%)*(1 - 6%))^(1/6) - 1

Geometric Return = 8.73%

8)

Dividend Yield = Total Dividend/Total amount invested

Dividend Yield = 330/(300*39.12)

Dividend Yield = 2.8%

Answer

D) 2.8%

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