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

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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?
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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...
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