yesterday dayne sold the 250 shares of the Johnson & Johnson stock that he owned
ID: 2695041 • Letter: Y
Question
yesterday dayne sold the 250 shares of the Johnson & Johnson stock that he owned for $61 per share. When he purchased the stock two years ago, dayne paid $59.50 per share. Every three months during the time that he held the stock, dayne received a quarterly dividend equal to $.50. (a) what return yield did dayne earn during the two years that he held J$J? (b) if the price of the stock was $63 per share one year ago, what return did dayne earn each year he held the stock? (problem worked out if possible)Explanation / Answer
a) yield is 1.5 + 0.5 * 8 = 5.5. => 5.5 * 100/ 59.5 = 9.24%
b)
1st year 3.5 + 0.5 * 4 = 5.5 => 5.5 * 100/ 59.5 = 9.24%
2nd year 0%
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.