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Problem 1-3 Calculating Returns (LO1, CFA1) Suppose you bought 600 shares of stock at an initial...
Problem 1-3 Calculating Returns (LO1, CFA1)
Suppose you bought 600 shares of stock at an initial price of $38 per share. The stock paid a dividend of $0.30 per share during the following year, and the share price at the end of the year was $33.
a. Compute your total dollar return on this investment. (A negative value should be indicated by a minus sign.)
b. What is the capital gains yield? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
d. What is the total rate of return on the investment? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Solutions
jeff jeffy answered 2 months agoRelated Solutions
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Direct
materials
$
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Direct labor
$
44,000
Variable manufacturing
overhead
$
22,200
Fixed manufacturing
overhead
33,400
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overhead
$
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Variable selling expense
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Fixed selling expense
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100
$55.65
250
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55.66
900
55.60
1,000
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Expiration
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Vol.
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1.63
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75
1.87
36
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36
2.15
25
3.46
Aug
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17
2.36
17
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a.
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