00:51 all a Question Practice 1 Unanswered You purchased 10 shares of stock for $100 per...

Question

Question

business accounting

Answer 1

Answer #1

Solution:

Total purchase cost = 10*$100 = $1,000

Dividend received = 10*$3 = $30

Price of share at year end = $98 per share

Value of share at year end = $98 * 10 = $980

Total earned return at year end = Market value of share + Dividend received - Purchase cost = $980 + $30 - $1,000 = $10

Holding period return = $10 / $1,000 = 1%

Answer 2

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