Question

In: Finance

You bought a share of Microsoft stock for $180. You held it until one year later when you collected a dividend of $4 and sold the stock for $215.

You bought a share of Microsoft stock for $180. You held it until one year later when you collected a dividend of $4 and sold the stock for $215. Your capital gain yield was ______.



8.98%



19.44%



12.09%



22.12%

Solutions

Expert Solution

Purchase Price of Microsoft = $180

Selling price one year later = $215

Capital Gain Yield = (Sell Price - Buy Price)/Buy Price

= ($215 - $180)/$180

Capital Gain Yield = 19.44%

Option 2


Related Solutions

You purchased a stock for $42.60 a share and sold it one year later for $44.30 a share.
You purchased a stock for $42.60 a share and sold it one year later for $44.30 a share. You received a total of $2.10 in dividends. What was your dividend yield on this investment? A.4.74 percent B.4.77 percent C.4.84 percent D.4.89 percent E.4.93 percent  
You bought a stock one year ago for $ 50.14 per share and sold it today...
You bought a stock one year ago for $ 50.14 per share and sold it today for $ 58.83 per share. It paid a $ 1.74 per share dividend today. If you assume that the stock fell $ 7.42 to $ 42.72 ​instead: a. Is your capital gain​ different? Why or why​ not? b. Is your dividend yield​ different? Why or why​ not?
An investor purchased a stock for $42.98 and sold it one year later for $46.17. The...
An investor purchased a stock for $42.98 and sold it one year later for $46.17. The investor also received a dividend payment of $0.13. What was the investor's realized capital gain rate? (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example, enter .0153 instead of 1.53%.) Hint: Realized capital gain: P1/P0-1
An investor purchased a stock for $21.36 and sold it one year later for $28.99. The...
An investor purchased a stock for $21.36 and sold it one year later for $28.99. The investor also received a dividend payment of $0.84. What was the investor's realized return? (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example, enter .0153 instead of 1.53%.)
Nancy Cotton bought NuTalk for $12 per share. One year later, Nancy sold the stock for $21 per share, just after she received a $0.60 cash dividend from the company. What total return did Nancy earn?
  Question 7 – Rates of Return on Stock [2 points]: Nancy Cotton bought NuTalk for $12 per share. One year later, Nancy sold the stock for $21 per share, just after she received a $0.60 cash dividend from the company. What total return did Nancy earn? What was the dividend yield and the capital gains yield?   Question 8 - Constant growth valuation [2 points]: A stock just paid a dividend of D0 = $1.50. The required rate of...
One year ago you bought a share of Bavarian Sausage stock for $46.50. During the year...
One year ago you bought a share of Bavarian Sausage stock for $46.50. During the year the stock paid a $2.75 dividend. You have decided to sell the stock exactly one year after the purchase (today).   If dividends are growing at 4% and the required rate of return is 9.42%, what is the percentage return of your stock investment? a. 5.91% b. 13.44% c. 26.69% d. 19.39%
The current futures price of a stock is $15 per share. One month later, when the...
The current futures price of a stock is $15 per share. One month later, when the futures option expires, the futures price could have risen to $16.5 per share or declined to $14 per share. The strike price is $14.5. The risk-free rate is 6%. What is the value of the risk-free portfolio at time zero? (1 mark)
The current futures price of a stock is $15 per share. One month later, when the...
The current futures price of a stock is $15 per share. One month later, when the futures option expires, the futures price could have risen to $16.5 per share or declined to $14 per share. The strike price is $14.5. The risk-free rate is 6%. What is the cost of futures contract at time zero? (1 mark)
The current futures price of a stock is $15 per share. One month later, when the...
The current futures price of a stock is $15 per share. One month later, when the futures option expires, the futures price could have risen to $16.5 per share or declined to $14 per share. The strike price is $14.5. The risk-free rate is 6%. What is the value of the risk-free portfolio at the maturity? (1 mark)
The current futures price of a stock is $15 per share. One month later, when the...
The current futures price of a stock is $15 per share. One month later, when the futures option expires, the futures price could have risen to $16.5 per share or declined to $14 per share. The strike price is $14.5. The risk-free rate is 6%. What is the value of long futures contract (per share) at the option maturity?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT