One year ago, Richard purchased 40 shares of common stock for $10 per share. During the year, he received one dividend payment i

Question

2 years ago

9

One year ago, Richard purchased 40 shares of common stock for $10 per share. During the year, he received one dividend payment i

n the amount of $0.50 per share. If the stock currently is worth $9 per share, what yield did Richard earn on his investment for the year

Business

1 answer:

galben [10] · Answer 1 · 2023-09-05T19:24:42+03:00

The yield on investment in such shares by Richard for the given condition will be a negative of 5%.

<h3>What is investment yield?</h3>

The total amount of returns generated over an investment during a given financial period is known as the investment yield for such period. It will be computed using the formula and given information as,

$\rm Investment\ Yield= \dfrac{Closing\ Price- Beginning\ Price\ + Dividend}{Beginning Price}\ x\ 100\\\rm Investment\ Yield= \dfrac{9-10+0.5}{10}\ \rm x\ 100\\\\\rm Investment\ Yield= -5\%$

Hence, the investment yield for Richard is as aforementioned.

Learn more about investment yield here:

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