You purchase 800 shares of stock at a price of $20 per share. One year later, the shares are selling for $23 per share. In addition, a dividend of $2 per share is paid at the end of each year. What is the capital gains yield for the investment? O 8.5% 10.0% O 25.0% O 20.0% 15.0%

Q: You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year.…

A: Data given: Purchase price (P0)= $50 per share Dividend per share per year = $2 i.e., D1=$2,  D2= $2…

Q: You bought 100 shares of stock at $25 each. At the end of year 1 you received $300 in dividends and…

A: An annual rate of return refers to the rate at which an investment earns profit during a year. When…

Q: Malko Enterprises’ stock currently sell for $150. They pay an annual dividend of $10, and you can…

A: Current price of stock = $ 150 Annual dividend = $ 10

Q: A stock sells for $40 per share and pays a one-time dividend for the full year of $.75. One year…

A: Holding period is defined as the total amount that a person earns for keeping an assets for a period…

Q: A company just paid a dividend of $1.03 a share. It expects to pay $.90 a share next year and a…

A: The Price of the stock is computed by computing the present value of future cashflows generated over…

Q: Artivel Mining Corp.'s preferred stock pays a dividend of $5 each year. If the stock sells for $40…

A: In this question we require to calculate the required return on Artivel Preferred Stock from the…

Q: Hudson Corporation will pay a dividend of $2.94 per share next year. The company pledges to increase…

A: A dividend is a sum of amount which is paid by a company on a periodic basis to its shareholders. A…

Q: Hudson Corporation will pay a dividend of $3.10 per share next year. The company pledges to increase…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: You purchase 100 shares of stock for $42 a share. The stock pays a $2.5 per share dividend at…

A: Purchase price of stock=$42Dividend=$2.5Ending stock price=$45Inflation rate=4%

Q: The market value of the stock of shine corporation at the beginning of year one is 120 per share at…

A: Income = 24 End of period value = 130 Initial value = 120

Q: You expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of the next 3 years.…

A: Stock price refers to the present value of the future expected cash flows. Stockholders receive cash…

Q: Jeffrey Lash, an investor with a required rate of return of 15%, is looking to buy shares of GPB…

A: The question can be solved as follows:

Q: You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year.…

A: Shares are the units of the total stock of a company which shows the fractional ownership of the…

Q: An investor buys stock for $10,000 and earns dividends of $25” during the course of the year. At the…

A: Calculation of Capital Gains Yield:The capital gains yield is -7%.Excel Spreadsheet:

Q: You purchased a share of a company five years ago for $75 per share and the current price is $80 per…

A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…

Q: You invest in Sandhill Corp. stock at a price of $63.50 per share. At the end of one year, you sell…

A: The return on investment can be computed as income earned on one share divide by market price per…

Q: Last year you bought 100 shares of National Corporation common stock for P53 per share. During the…

A: The rate of return earned over the year is calculated as capital gain yield plus the dividend yield

Q: Coolibah Holdings is expected to pay dividends of $1.30 every six months for the next three years.…

A: A stock is a financial security issued by corporations to raise equity capital for a long-term…

Q: You bought 400 shares of Heavy Metal Inc. at ₱300 per share over the year, you received ₱75 per…

A: The annual rate of return is the annual income earned from an investment which is considered in…

Q: An investor purchased 500 shares of Electric Shaver Corporation stock at a price of $22.50 per…

A: Formula:

Q: Six months ago, you purchased 1,100 shares of ABC stock for $21.20 a share and have received total…

A: Number of shares (N) = 1100 Purchase price (P0) = $ 21.20 Total dividend payments per share (D) = $…

Q: This morning you purchased a stock that just paid an annual dividend of $2.00 per share. You require…

A: Price of sharen = Dn+1 / ( Required return - Growth rate )

Q: You own 450 shares of Maslyn Tours stock that sells for $58.06 per share. If the stock has a…

A: We need to use dividend yield formula to calculate dividend par shares. Dividend yield =Dividend par…

Q: You require an 11 percent return on your investment. Big business Corp. will pay a $3.60 per share…

A: Before making an investment or forming a firm to work on a certain project, people want to know how…

Q: A Corporation will pay a dividend of $2.85 per share next year. The company pledges to increase its…

A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…

Q: An investor buys $10,000 of the stock of a certain company and decides to hold for two month Assume…

A: Expected value represents the likelihood worth of initial investment after considering the probable…

Q: Last year you bought 100 shares of NC Corp. common stock for P53 per share. During the year you…

A: The rate of return is simply calculated as capital gain yield plus dividend yield

Q: What was your total loss on this investment

A: Margin: It refers to the amount borrowed from the broker for purchasing a security/investment. It…

Q: Suppose you have $10,000 in cash to invest. You decide to sell short $5000 worth of Earlham stock…

A: Investment amount = $10000 Short sell amount = $5000 Treasury bill interest rate = 5% P0 = $40 P1 =…

Q: You purchase 800 shares of stock at a price of $20 per share. One year later, the shares are selling…

A: The capital gains yield is calculated as change in share price over the holding period divided by…

Q: White Wedding Corporation will pay a $3.35 per share dividend next year. The company pledges to…

A: using Dividend distribution model

Q: A Company paid its first annual dividend yesterday in the amount of $0.15 a share. The company plans…

A: Information Provided: Year 1 dividend = $0.30 ($0.15*2) Year 2 dividend = $$0.60 ($0.30*2) Year 3…

Q: suppose a company pays a Rs. 2.5 annual dividend on its common stock in a single annual installment,…

A: The current stock price can be calculated using divided discount model. As per this model stock…

Q: An investor buys $ 16,000 worth of a stock priced at $ 18 per share using 70 % initial margin . The…

A: The initial margin on an investment is the starting amount that an investor who wishes to open a…

Q: An investor receives an 15 percent total return by purchasing a stock and selling it after one year…

A: The Return is calculated with the help of following formula Return = (P1 - P0) + Dividend…

Q: This year, Hope Corporation paid a dividend of $0.50 per share.  The company expect dividends to…

A: Value of share price = [D0 x (1 + g)]/(r - g) D0 = Current dividend g = Growth rate r = required…

Q: You bought 100 shares of IBM stock last year for $75, you received a $7 per share divided during the…

A: The dividend yield on investment is the percentage of dividend received based on the current price…

Q: If you invest $40,000 in a stock whose value grows at 2% per year, your investment is nearest what…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a…

A: Capital Gain Yield = Year End Price - Initial PriceInitial Pricex100 Dividend Yield = Dividend per…

Q: can I have this explained? After 20 years, 100 shares of stock originally purchased for $1000 was…

A: The formula to calculate the yield on investment:Yield on investment can be determined using the…

Q: An investor purchased 50 shares of stock in a company for $50 per share. One year later, the…

A: Rate of return = [ Sales - Purchase ] / Purchase

Q: You bought 400 shares of Heavy Metal Inc. at ₱300 per share over the year, you received ₱75 per…

A: Percentage return=selling price+dividendbuying price-1

Q: Seven months ago, you purchased 400 shares of stock on margin. The initial margin requirement on…

A: The conceptual formula used:

Q: You purchased 200 shares of stock at a price of $45.36 per share. Over the last year, you have…

A: Given information : Total number of shares purchased 200 Purchase price of shares  $      45.36…

Q: An investor buys 300 shares of stock selling a $76 per share using a margin of 59%. The stock pays…

A: Number of shares = 300 shares Selling price per share = $76 Annual dividend = $3 Annual interest…