Answered: Today, you sold your stock at a price…

Business

Finance

Today, you sold your stock at a price of $38.88 per share. What was your total dollar return on the investment?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter7: Stocks (equity) - Characterstics And Valuation

Section: Chapter Questions

Problem 2PROB

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

You purchased 850 shares of Barrett Golf Corp. stock at a price of $35.93 per share. While you owned the stock, you received dividends totaling $.45 per share. Today, you sold your stock at a price of $38.88 per share. What was your total dollar return on the investment?

Multiple Choice

$2,508
$2,794
$2,890
$2,699

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