Question
In: Finance
A stock was purchased for Ghc40 per share and sold for Ghc50 per share one year...
- A stock was purchased for Ghc40 per share and sold for Ghc50 per share one year later. In the course of the year the company paid a dividend of Ghc2 per share.
- Calculate the return on the investment
- Calculate the dividend yield on the investment
- Calculate the capital gains yield on the investment
Solutions
Expert Solution
Return on investment=(End value-Beginning value+Dividend)/Beginning value
=(50-40+2)/40
=30%
Dividend yield=Dividend/Beginning value
=2/40
=5%
Capital gains yield=(End value-Beginning value)/Beginning value
=(50-40)/40
=25%
jeff jeffy answered 3 years agoRelated Solutions
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Ending
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Beginning
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Cash
$
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$
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Accounts receivable
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92,000
$
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Inventory
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Balance
Beginning
Balance
Cash
$
30,500
$
46,000
Accounts receivable
$
52,000
$
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Inventory
$
49,300
$
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Ending
Balance
Beginning
Balance
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$
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Accounts receivable
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Cash
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Accounts receivable
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