Find expert answers and community-driven knowledge on IDNLearn.com. Get accurate and detailed answers to your questions from our dedicated community members who are always ready to help.
Sagot :
Answer:
Yield earned by Richard on his investment during the year is 5%.
Explanation:
This can be calculated as follows:
Number of shares purchased = Worth of common stock one year ago / Price per share one year ago = $1,260 / $42 = 30 shares
Total dividend received during the year = Number of shares purchased * Dividend per share * 2 = 30 * $0.05 * 2 = $3
Current worth of common stock = Number of shares purchased * Current market value per share = 30 * $44 = $1,320
Yield earned during the year = (Current worth of common stock - Worth of common stock one year ago + Total dividend received during the year) / Worth of common stock one year ago = ($1,320 - $1,260 + $3) / $1,260 = 0.05, or 5%
Therefore, yield earned by Richard on his investment during the year is 5%.
Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Your questions are important to us at IDNLearn.com. Thanks for stopping by, and come back for more reliable solutions.