Yesterday Sandi sold 1,000 shares of stock that she owned for $45 per share. When she purchased the stock two years ago, Sandi paid $50 per share. Every three months during the time she held the stock, Sandi received a quarterly dividend equal to $0.50 per share. Eight dividends were received during the two years she held the stock. (a) What return (yield) did Sandi earn during the two years she held the stock? (b) If the price of the stock was $45 per share one year ago, what return did Sandi earn in each year she held the stock?
Yesterday Sandi sold 1,000 shares of stock that she owned for $45 per share. When she purchased the stock two years ago, Sandi paid $50 per share. Every three months during the time she held the stock, Sandi received a quarterly dividend equal to $0.50 per share. Eight dividends were received during the two years she held the stock. (a) What return (yield) did Sandi earn during the two years she held the stock? (b) If the price of the stock was $45 per share one year ago, what return did Sandi earn in each year she held the stock?
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 5PROB
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Yesterday Sandi sold 1,000 shares of stock that she owned for $45 per share. When she purchased the stock two years ago, Sandi paid $50 per share. Every three months during the time she held the stock, Sandi received a quarterly dividend equal to $0.50 per share. Eight dividends were received during the two years she held the stock. (a) What return (yield) did Sandi earn during the two years she held the stock? (b) If the price of the stock was $45 per share one year ago, what return did Sandi earn in each year she held the stock?
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