Question

Tamara June purchased 140 shares of All-Canadian Manufacturing Company Stock at $32.50 a share. One year later, she sold the stocks for $43 a share. She paid her broker a $32 commission when she purchased the stocks and a $46 commission when she sold them. During the 12 months she owned the stocks, she received $200 in dividends.

a. Calculate Tamara’s annual shareholder return. (Round your intermediate calculations to 3 decimal places and final answer to 1 decimal place. Omit the "%" sign in your response.) Annual shareholder return % ?

b. Break this total return into its components: dividend yield and capital gains yield. (Enter answers in decimals, not in percent. Round "Dividend yield" to 3 decimal places and "Capital gains yield" to 2 decimal places.) Dividend yield and Capital gains yield?

Answer #1

Ans A ) Annual share holder return will be find as below

Purcahse price = stock price * number of stock + commision

= 140 * 32.5 + 32

= 4582

Selling price = stock price * number of stock - commission

= 140* 43 -46

= 5974

Annual share holder return = (selling price + dividend - purchase price)/(purchase price * number of share)

= (5974 + 200 - 4582)/(32.5*140)

= 34.989%

Ans b) Dividend yield = dividend/4550

= 200/4550

= 4.396%

Capital gain yield = Annual return - dividend yield

= 30.593%

One year ago, you purchased 500 shares of stock at a
cost of $9500. The stock paid an annual dividend of $2.20 per
share. Today, you sold those shares for $25.5 each. What is the
capital gains yield on this investment? What was your dividend
yield on this investment? And what is total dollar return? What is
Percentage return?

A stock is selling today for $47 per
share. At the end of the year, it pays a dividend of $2 per share
and sells for $52.
What is the total rate of return on the stock?
(Round your answer to 2 decimal places.)
Total rate of return %
What is the dividend yield? (Round your
answer to 2 decimal places.)
Dividend yield %
What is capital gains yield?
(Round your answer to 2 decimal
places.)
Capital gains yield...

You bought a stock one year ago for $51.77 per share and sold it
today for $59.025 per share. It paid a $1.43 per share dividend
today. a. What was your realized return? b. How much of the return
came from dividend yield and how much came from capital gain? a.
What was your realized return? The realized return was nothingm%.
(Round to two decimal places.) b. How much of the return came from
dividend yield and how much came...

One year ago, you purchased a stock at a price of $43.20 per
share. The stock pays quarterly dividends of $.18 per share. Today,
the stock is selling for $45.36 per share. What is your capital
gains yield on this investment? Calculate the percentage to 2
decimal places.
One year ago, you purchased a stock at a price of $43.20 per
share. The stock pays quarterly dividends of $.18 per share. Today,
the stock is selling for $45.36 per share....

Suppose you bought 650 shares of stock at an initial price of
$48 per share. The stock paid a dividend of $.50 per share during
the following year, and the share price at the end of the year was
$43.
a. Compute your total dollar return on this
investment. (A negative value should be indicated by a
minus sign.)
Dollar return:
b. What is the capital gains yield? (A
negative value should be indicated by a minus sign. Do not...

9. One year ago, you purchased shares of PQR stock at a price of
$30 per share. The stock now sells for $33 per share. In addition,
the stock paid a dividend of $1.50 per share during the year. a)
Find the stock’s capital gains yield. b) Find the stock’s dividend
yield. c) Compute the total dollar return per share of stock d)
Calculate the percentage return for the investment in the
stock.

On February 20, you bought shares of stock in Microsoft (MSFT),
at $107.15 per share. One quarter later, in mid-May, you sold your
shares at a price of $126.02/share. An instant before the sale, you
received a dividend of $0.46/share.1 a. (i) Compute the total (or
holding period) percentage return on your investment. (ii)
Translate the quarterly return from part a(i) into an effective
annual return. // Total return can be decomposed into two
components. b. Calculate the dividend yield....

Two years ago, you
purchased 100 shares of General Mills Corporation. Your purchase
price was $42 a share, plus a total commission of $29 to purchase
the stock. During the last two years, you have received the
following dividend amounts: $1.92 per share for the first year and
$1.96 per share the second year. Also, assume that at the end of
two years, you sold your General Mills stock for $49 a share minus
a total commission of $34 to...

You purchased 300 shares of Samuel, Inc. stock for $44.90 a
share. You have received a total of $630 in dividends and $12.460
in proceeds from selling the shares. 1. What is your total (rate
of) return on this stock? II. What is your capital gains yield on
this stock? II. What is your dividend yield on this stock

You purchased 300 shares of Samuel, Inc. stock for $44.90 a
share. You have received a total of $630 in dividends and $12.460
in proceeds from selling the shares. 1. What is your total (rate
of) return on this stock? II. What is your capital gains yield on
this stock? II. What is your dividend yield on this stock

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 16 minutes ago

asked 37 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago