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..1 T-Mobile 3:43 PM msx.claflin.edu Last year, you purchased a stock at a price

ID: 2796293 • Letter: #

Question

..1 T-Mobile 3:43 PM msx.claflin.edu Last year, you purchased a stock at a price of $66.00 a share. Over the course of the year, you received $2.50 per share in dividends and inflation averaged 3 percent. Today you sold your shares for $69.80 a share. What is your approximate real rate of return on this investment? You purchased 240 shares of stock at a price of $37.92 per share. Over the last year, you have received total dividend income of $255. What is the dividend yield? Six months ago, you purchased 2,000 shares of ABC stock for $25.83 a share. You have received dividend payments equal to S.50 a share. Today, you sold all of your shares for S27.82 a share. What is your total dollar return on this investment? One year ago, you purchased a stock at a price of $53.46 per share. Today, you sold your stock at a loss of 18.39 percent. Your capital loss was $12.08 per share. What was the total dividends per share paid on this stock over the year? You own a stock that had returns of 12.26 percent,-16.22 percent, 21.48 percent, and 19.92 percent over the past four years. What was the arithmetic average return for this stock? One year ago, you purchased 320 shares of Titan Wood Products for $61.31 per share. The stock has paid dividends of $.69 per share over the past year and is currently priced at $66.34. What on your investment? is your total dollar return You own a stock that had returns of 9.18 percent,-6.66 percent, 22.24 percent, and 14.96 percent over the past four years. What was the geometric average return for this stock? 8 You purchased a stock at a price of $50.20. The stock paid a dividend of $1.99 per share and the stock price at the end of the year is $56.35. What is the capital gains yield? Over a certain period, large-company stocks had an average return of 12.99 percent, the average risk-free rate was 2.66 percent, and small-company stocks averaged 17.77 percent. What was the risk premium on small- company stocks for this period? st year, you purchased 690 shares of Forever, I at a price of $49.40 per share. You received $1,035 in dividends and a total of $40,551 when you sold the stock. What was the capital gains yield on this stock? La nc., stock

Explanation / Answer

1-

amount of dividend

2.5

2.5

capital gain

69.8-66

3.8

total return in value

2.5+3.8

6.3

return in percentage = return in value/purchase price

(6.3/66)

9.55%

real rate of return

rate of return-inflation rate

6.5500%

2-

no of shares

240

price per share

37.92

value of investment =240*37.92

9100.8

total dividend per share

225

Dividend yield = total dividend/value of investment

225/9100.8

Dividend yield = total dividend/value of investment

2.47%

3-

total dividend

.5*2000

1000

capital gain = (selling price-purchase price)

(2000*27.82)-(2000*25.83)

3980

total dollar return

1000+3980

4980

4-

selling price

53.46*(1-.1839)

43.628706

Capital loss

12.08

selling price after capital loss of 12.08

53.46-12.08

41.38

dividend received

43.6287-41.38

2.2487

1-

amount of dividend

2.5

2.5

capital gain

69.8-66

3.8

total return in value

2.5+3.8

6.3

return in percentage = return in value/purchase price

(6.3/66)

9.55%

real rate of return

rate of return-inflation rate

6.5500%

2-

no of shares

240

price per share

37.92

value of investment =240*37.92

9100.8

total dividend per share

225

Dividend yield = total dividend/value of investment

225/9100.8

Dividend yield = total dividend/value of investment

2.47%

3-

total dividend

.5*2000

1000

capital gain = (selling price-purchase price)

(2000*27.82)-(2000*25.83)

3980

total dollar return

1000+3980

4980

4-

selling price

53.46*(1-.1839)

43.628706

Capital loss

12.08

selling price after capital loss of 12.08

53.46-12.08

41.38

dividend received

43.6287-41.38

2.2487