{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

optionals - chap 12

# optionals - chap 12 - b \$11.44 c \$1,039 d \$1,144 3 You...

This preview shows pages 1–2. Sign up to view the full content.

12 ________ 1. One year ago, you purchased a stock at a price of \$36.24 a share. You received an annual dividend of \$1.80 a share and sold the stock today for \$32.12 a share. What was your capital gains rate of return? a. -11.28 percent b. -11.37 percent c. -12.76 percent d. -12.83 percent ________ 2. You purchased 100 shares of Resorts, Inc. stock at a price of \$35.87 a share exactly one year ago. You have received dividends totaling \$1.05 a share. Today, you sold your shares at a price of \$46.26 a share. What is your total dollar return on this investment?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: b. \$11.44 c. \$1,039 d. \$1,144 ________ 3. You previously owned 200 shares of Reynolds Co. stock. This stock earned a dividend yield of 3.75 percent and a total return of 10.74 percent. If you purchased the stock at \$43.90, approximately what price did you receive when you sold it one year later? a. \$45.55 b. \$46.97 c. \$48.62 d. \$50.05 1. b Capital gains yield = (\$32.12 − \$36.24) / \$36.24 = -.11369 = -11.37 percent 2. d (\$46.26 -\$35.87 + \$1.05) × 100 = \$1,144 3. b Capital gains yield = .1075 –.0375 = .07; P 2 = \$43.90 (1.07) = \$46.97...
View Full Document

{[ snackBarMessage ]}