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yarga [219]
3 years ago
14

You put up $40 at the beginning of the year for an investment. The value of the investment grows 5% and you earn a dividend of $

4.50. Your HPR was ____. A. 5.0% B. 4.5% C. 11.3% D. 16.3%
Business
1 answer:
fgiga [73]3 years ago
6 0

Answer:

16.3%

Explanation:

$40 was put at the beginning of the year for an investment

The investment grows by 5%

= 5/100

= 0.05

The dividend is $4.50

The first step is to calculate the dividend yield

= $4.50/40

= 0.1125

Therefore, the HPR can be calculated as follows

= 0.1125+0.05

= 0.163×100

= 16.3%

Hence the HPR was 16.3%

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