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At the beginning of the year, you purchased a share of stock for $55. Over the year the dividends paid on the stock were $2.50 per share. a. Calculate the return if the price of the stock at the end of the year is $50. (Negative amount should be indicated by a mínus sign. Round your answer to 2 decimal places. (e.g., 32.16)) b. Calculate the return if the price of the stock at the end of the year is $60. (Round your answer to 2 decimal places. (e.g., 32.16)) a. Return b. Return % %

At the beginning of the year, you purchased a share of stock for $55. Over the year the dividends paid on the stock were $2.50 per share. a. Calculate the return if the price of the stock at the end of the year is $50. (Negative amount should be indicated by a mínus sign. Round your answer to 2 decimal places. (e.g., 32.16)) b. Calculate the return if the price of the stock at the end of the year is $60. (Round your answer to 2 decimal places. (e.g., 32.16)) a. Return b. Return % %

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
Problem 1PROB
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Problem 8-7 (LG 8-5) At the beginning of the year, you purchased a share of stock for $55. Over the year the dividends paid on the stock were $2.50 per share. a. Calculate the return if the price of the stock at the end of the year is $50. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) b. Calculate the return if the price of the stock at the end of the year is $60. (Round your answer to 2 decimal places. (e.g., 32.16)) a. Retum b. Return % %
Transcribed Image Text:Problem 8-7 (LG 8-5) At the beginning of the year, you purchased a share of stock for $55. Over the year the dividends paid on the stock were $2.50 per share. a. Calculate the return if the price of the stock at the end of the year is $50. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) b. Calculate the return if the price of the stock at the end of the year is $60. (Round your answer to 2 decimal places. (e.g., 32.16)) a. Retum b. Return % %
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