You bought a stock one year ago for $49.49 per share and sold it today for $59.5

Question

You bought a stock one year ago for $49.49 per share and sold it today for $59.58 per share. It paid a $1.45 per share dividend today. If you assume that the stock fell $8.22 to $41.27 instead: a. Is your capital gain different? Why or why not? b. Is your dividend yield different? Why or why not? a. Is your capital gain different? Why or why not? (Select the best choice below.) 0 A. The capital gain will be different because the selling price has changed O B. The capital gain will not be different because the purchase price did not change ° C. The capital gain will be different because the dividend did not change D. The capital gain will not be different because the selling price is less than the purchase price b. Is your dividend yield different? Why or why not? (Select the best choice below.) 0 A. The dividend yield will be different because the selling price impacts the dividend paid ° C. The dividend yield will not be different because the selling price impacts dividend yield B. The dividend yield will not be different because the dividend is the same and the change in selling price does not effect the dividend yield D. The dividend yield will be different because the selling price decreased

Explanation / Answer

Answer a) Yes why capital gain will be different because the selling price changed

For example my capital gain intially was = (59.58-49.49)/49.49 = 20.39%

Capital gain now = (41.27-49.49) / 49.49 = -16.61%

Answer b) option b

No dividend yield remains same as the amount of dividend remains same and selling price does not impact dividend yield

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.