Last year, Carlotta bought five shares of Spot-Off Cleaners for $85 each. During the year, Carlotta recieved one cash dividend equal to $5.10 per share. Earlier today, she sold the stock for $88.40.  (a) What rate of return did Carlotta earn on her investment? (b) What were the (1) dividend yield and (2) the capital gains tield associated with holding the stock?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
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Last year, Carlotta bought five shares of Spot-Off Cleaners for $85 each. During the year, Carlotta recieved one cash dividend equal to $5.10 per share. Earlier today, she sold the stock for $88.40. 

(a) What rate of return did Carlotta earn on her investment?

(b) What were the (1) dividend yield and (2) the capital gains tield associated with holding the stock?

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