Two years ago, you purchased 100 shares of General Mills Corporation. Your purchase price was $59 a share, plus a total commission of $30 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.85 per share for the first year and $1.98 per share the second year. Also, assume that at the end of two years, you sold your General Mills stock for $67 a share minus a total commission of $39 to sell the stock. Calculate the dividend yield for your General Mills stock at the time you purchased it. Note: Enter your answer as a percent rounded to 2 decimal places. Calculate the dividend yield for your General Mills stock at the time you sold it. Note: Enter your answer as a percent rounded to 2 decimal places. Calculate the total return for your General Mills investment when you sold the stock at the end of two years. Note: Do not round intermediate calculations. Round your final answer to the nearest whole number. Calculate the annualized holding period yield for your General Mills investment at the end of the two-year period. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter20: Financing With Derivatives
Section: Chapter Questions
Problem 8P
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I have no idea how to calculate this return on investment. Help Wanted

Two years ago, you purchased 100 shares of General Mills Corporation. Your purchase price was $59 a share, plus a total commission of $30 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.85 per share for the first year and $1.98 per share the second year. Also, assume that at the end of two years, you sold your General Mills stock for $67 a share minus a total commission of $39 to sell the stock.

  1. Calculate the dividend yield for your General Mills stock at the time you purchased it.

    Note: Enter your answer as a percent rounded to 2 decimal places.

  2. Calculate the dividend yield for your General Mills stock at the time you sold it.

    Note: Enter your answer as a percent rounded to 2 decimal places.

  3. Calculate the total return for your General Mills investment when you sold the stock at the end of two years.

    Note: Do not round intermediate calculations. Round your final answer to the nearest whole number.

  4. Calculate the annualized holding period yield for your General Mills investment at the end of the two-year period.

    Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

     

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Two years ago, you purchased 100 shares of General Mills Corporation. Your purchase price was $56 a share, plus a total commission of $33 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.40 per share for the first year and $1.50 per share the second year. Also, assume that at the end of two years, you sold your General Mills stock for $66 a share minus a total commission of $33 to sell the stock.

  1. Calculate the dividend yield for your General Mills stock at the time you purchased it.

    Note: Enter your answer as a percent rounded to 2 decimal places.

  2. Calculate the dividend yield for your General Mills stock at the time you sold it.

    Note: Enter your answer as a percent rounded to 2 decimal places.

  3. Calculate the total return for your General Mills investment when you sold the stock at the end of two years.

    Note: Do not round intermediate calculations. Round your final answer to the nearest whole number.

  4. Calculate the annualized holding period yield for your General Mills investment at the end of the two-year period.

    Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

     

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