Question

Dorian bought a stock for $ 72 and two months later sold it for $ 62....

Dorian bought a stock for $ 72 and two months later sold it for $ 62. During the two months, the stock's dividend yield was 1.5%. What was Dorian's return on the investment? (Provide your answer in percent rounded to two decimals)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Total Return on a Stock = Capital Gains Yield + Dividend Yield

Capital Gains Yield = (Selling Price - Initial Price)/Initial Price = ($62 - $72)/$72 = -13.89%

Total Return = -13.89% + 1.5% = -12.39%

Add a comment
Know the answer?
Add Answer to:
Dorian bought a stock for $ 72 and two months later sold it for $ 62....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Andrew purchased a stock for $175 and sold it for $250 one year later. If he...

    Andrew purchased a stock for $175 and sold it for $250 one year later. If he earned a dividend income of $30, the stock's yield is: Group of answer choices 42 percent. 53 percent. 72 percent. 81 percent. 60 percent.

  • You bought a share of stock for. $47.50 that paid a dividend of $.72 and sold...

    You bought a share of stock for. $47.50 that paid a dividend of $.72 and sold one year later for $51.38. What was your dollar profit/loss and holding period return? a) $3.88 ; 9.68% b) $4.60 ; 9.68% c) $3.88 ; 8.95% d) $0.72 ; 7.55%

  • Suppose you bought 500 shares of stock at an initial price of $44 per share. The...

    Suppose you bought 500 shares of stock at an initial price of $44 per share. The stock paid a dividend of $.42 per share during the following year, and the share price at the end of the year was $45. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)   Capital gains yield % b. What is the dividend yield?...

  • Suppose you bought 700 shares of stock at an initial price of $43 per share. The...

    Suppose you bought 700 shares of stock at an initial price of $43 per share. The stock paid a dividend of $0.40 per share during the following year, and the share price at the end of the year was $44. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent...

  • Suppose you buy stock at a price of $65 per share. Five months later, you sell...

    Suppose you buy stock at a price of $65 per share. Five months later, you sell it for $69. You also received a dividend of $0.72 per share. What is your annualized return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Annualized return %

  • Suppose you buy stock at a price of $77 per share. Four months later, you sell...

    Suppose you buy stock at a price of $77 per share. Four months later, you sell it for $82. You also received a dividend of $0.76 per share. What is your annualized return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) & Answer is complete but not entirely correct. Annualized return 22.40 %

  • Problem 1-2 Suppose you bought 200 shares of stock at an initial price of $38 per...

    Problem 1-2 Suppose you bought 200 shares of stock at an initial price of $38 per share. The stock paid a dividend of $.30 per share during the following year, and the share price at the end of the year was $41. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the'%"sign in your response.) Capital gains yield b. What is the dividend yield? (Do...

  • Suppose you bought 900 shares of stock at an initial price of $44 per share. The...

    Suppose you bought 900 shares of stock at an initial price of $44 per share. The stock paid a dividend of $0.42 per share during the following year, and the share price at the end of the year was $39. a. Compute your total dollar return on this investment. (A negative value should be indicated by a minus sign.) b. What is the capital gains yield? (A negative value should be indicated by a minus sign. Do not round intermediate...

  • 1 months ago, you purchased 798 shares of a non-dividend paying stock for $24.57 a share....

    1 months ago, you purchased 798 shares of a non-dividend paying stock for $24.57 a share. Today, you sold those shares for $38.33 a share. What was your annualizedrate of return (in percent) on this investment? Answer to two decimals.

  • You bought a stock three months ago for $43.48 per share. The stock paid no dividends....

    You bought a stock three months ago for $43.48 per share. The stock paid no dividends. The current share price is $47.09    What is the APR of your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)      APR %    What is the EAR of your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)      EAR %

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT