Stock's dividend yield
Not what you're looking for?
One year ago, you bought 500 shares of Webster, Inc., stock at $37 per share. You just received
a dividend of $1,000 and Webster stock now sells for $38.
a. How much did you earn in capital gains?
b. What was your total dollar return?
c. What was your percentage return?
d. What was the stock's dividend yield?
Problem 2
Two years ago, General Materials and Standard Fixtures' stock prices were the same. Over the first year, General Materials' stock price increased by 10 percent while Standard Fixtures' stock price decreased by 10 percent. Over the second year, General Materials' stock price decreased by 10 percent and Standard Fixtures' stock price increased by 10 percent. Do these two stocks have the same prices today? Demonstrate your answer by assuming that both stock prices were $7 two years ago.
Purchase this Solution
Solution Summary
Response provides the computation of stock's dividend yield
Solution Preview
One year ago, you bought 500 shares of Webster, Inc., stock at $37 per share. You just received
a dividend of $1,000 and Webster stock now sells for $38.
a. How much did you earn in capital gains?
Earnings in Capital gains=
=Sales-Purchase
=500*(38-37)
=$500.00
b. What was your total dollar return?
=Capital Gain+Dividend
...
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.