Last year, Julie Johnson bought one share of com- mon stock for $950. During the year, Julie received a $47.50 dividend. Earlier today, she sold the stock for $988. (a) What rate of return did Julie earn on her investment? (b) What were the (1) dividend yield and (2) the capital gains yield associated with holding the stock?
Last year, Julie Johnson bought one share of com- mon stock for $950. During the year, Julie received a $47.50 dividend. Earlier today, she sold the stock for $988. (a) What rate of return did Julie earn on her investment? (b) What were the (1) dividend yield and (2) the capital gains yield associated with holding the stock?
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
Problem 2PROB
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