Problemlast year julie johnson bought one share of common, Ask an Expert

Finance

Problem:

Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received a $47.50 dividend. Earlier today, she sold the stock for $988.

Task:

Question 1: What rate of return did Julie earn on her investment?

Question 2: What was the (1) dividend yield and (2) the capital gains yield associated with holding the stock?

Explain in detail and provide all calculations and formulas.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146220

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