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Tresset [83]
3 years ago
14

Suppose you bought 400 shares of stock at an initial price of $53 per share. The stock paid a dividend of $0.58 per share during

the following year, and the share price at the end of the year was $54.
a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
b. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What is the total rate of return on the investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
Gekata [30.6K]3 years ago
7 0

Answer:

Explanation:

Capital gains yield is the return investors get if their stocks appreciate in value. In this case , the price increases from $53 to $54

Capital gains yield(CGY) formula = (New price - Old price)/ Old price

CGY = (54-53)/53

= 0.01887 or 1.89%

Dividend yield measure the return from dividend payment on the stock.

It is calculated as follows;

Dividend yield = Dividend / Price

= 0.58/ 53

=0.01094 or 1.09%

Total rate of return = capital gains yield + dividend yield

total return = 0.01887 + 0.01094

= 0.0298 or 2.98%

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Explanation:

The primary objective of HRM is to ensure the availability of competent and willing workforce for an organization. Beyond this, there are other objectives too. Specifically, HRM objectives are four fold: Societal, Organization, Functional and personal

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2 years ago
Which is the most common method for calculating credit card balances? A. Previous balance method, B. Adjusted balance method, C.
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3 years ago
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3 years ago
Three corners markets paid an annual dividend of $1.37 a share last month. today, the company announced that future dividends wi
nikklg [1K]
Given 
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   2.8 % increase 
   11.6 % returned
Find how much pay to purchase one share of this stock 

$1.37 x 0.028 = 0.03836
$1.37+0.03836 = 1.40836
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The answer is $1.57 to purchase one share of this stock today.</span>
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3 years ago
Three people invest in a business. The first two invest in the ratio 2:3, and the third person
Diano4ka-milaya [45]

Answer:

$15 million

Explanation:

The three investors' total investments would add up to  100% or 1.

The first two invested in the ration of 2:3

It means ;

Investor 1:  2/5

Investor 2: 3/5

If investor 3 invested twice as investor 1 and 2, then we can deduce that he invested ( 2/5 + 3/5) x 2

the  new denominator is 10, meaning

Investor 1 had 2/10,

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If total investments were $30 million, then the highest investor invested

5/10 x $30million

=0.5 x $30 million

=$15 million

5 0
3 years ago
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