A stock is bought for $22.50 and sold for $26.00 one year later, immediately after it...

Question

Question

A stock is bought for $22.50 and sold for $26.00 one year later, immediately after it...

A stock is bought for $22.50 and sold for $26.00 one year later, immediately after it has paid a dividend of $1.50. What is the capital gain rate for this transaction?

a. 7.78%

b. 3.11%

c. 15.56%

d. 12.45%

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

capital gain rate =(End value-Beginning value)/Beginning value

=(26-22.5)/22.5

which is equal to

=15.56%(Approx).

Add a comment

Answer 2

Similar Homework Help Questions

#21. A stock is bought for $ 21.00 and sold for $26.50 one year later, immediately...

#21. A stock is bought for $ 21.00 and sold for $26.50 one year later, immediately after it has paid a dividend of$1.50. What is the capital gain rate for this transaction?
12) Kelly bought a stock at a price of $22.50. She received a $1.75 dividend and...

12) Kelly bought a stock at a price of $22.50. She received a $1.75 dividend and sold the stock for $24.75. What is Kelly's capital gain on this investment?
Nancy Cotton bought 400 shares of NeTalk for $15 per share. One year later, Nancy sold...

Nancy Cotton bought 400 shares of NeTalk for $15 per share. One year later, Nancy sold the stock for $21per share, just after she received a $0.90 cash dividend from the company. a) What is dollar return earned by Nancy for the year? b) What is the rate return earned by Nancy? c) separate the rate of return computed in part (b) into the dividend yield and the capital gains yield. In other words, compute the dividend yield and the...

You bought a stock one year ago for $50.52 per share and sold it today for...

You bought a stock one year ago for $50.52 per share and sold it today for $45.96 per share. It paid a $1.77 per share dividend today. a. What was your realized return? b. How much of the return came from dividend yield and how much came from capital gain?
An investor purchased a stock for $44.95 and sold it one year later for $46.81. The...

An investor purchased a stock for $44.95 and sold it one year later for $46.81. The investor also received a dividend payment of $0.96. What was the investor's realized capital gain rate? (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example, enter .0153 instead of 1.53%.) Your Answer:
You bought a stock a year ago for $50 per share and sold it today for...

You bought a stock a year ago for $50 per share and sold it today for $55. It paid a $1 dividend yesterday. 1. What was your realized return? 2. How much of the return came from the dividend yield and how much came from the capital gain? 3. The same scenario as above, but the stock fell to $45 per share. What is the dividend yield now? What is the capital gain now?

You bought a share of stock for. $47.50 that paid a dividend of $.72 and sold...

You bought a share of stock for. $47.50 that paid a dividend of $.72 and sold one year later for $51.38. What was your dollar profit/loss and holding period return? a) $3.88 ; 9.68% b) $4.60 ; 9.68% c) $3.88 ; 8.95% d) $0.72 ; 7.55%
An investor purchased 500 shares of Electric Shaver Corporation stock at a price of $22.50 per...

An investor purchased 500 shares of Electric Shaver Corporation stock at a price of $22.50 per share. One year later, the shares are selling for $21 each. The stock paid a dividend of $1.50 per share. What is the total percentage return on the investment? Group of answer choices -6.76% 0.00% 6.76% 7.14%
Problem 2. [6 pts]. You bought a stock one year ago for $155 per share and...

Problem 2. [6 pts]. You bought a stock one year ago for $155 per share and sold i today for $265 per share. It paid a $1.20 per share dividend today. a) what was your realized return? b) How much of the return came from dividend yield and how much came from capital gain? (Show your calculations)

Last year a portfolio manager at PIB bought two million shares of Volkswagen’s stock at €75...

Last year a portfolio manager at PIB bought two million shares of Volkswagen’s stock at €75 per share and sold it one year later at €80. The spot exchange rate one year ago was $1.50 = €1 and the spot rate prevailing at the end of the year was $1.40 = €1. a. What are the values of portfolio manager’s gain(loss) in Euro (provide amount and percentage)? b. What the values of portfolio manager’s gain(loss) in USD (provide amount and...

A stock is bought for $22.50 and sold for $26.00 one year later, immediately after it...

Homework Answers

Add Answer to:
A stock is bought for $22.50 and sold for $26.00 one year later, immediately after it...

Post as a guest

Earn Coins

#21. A stock is bought for $ 21.00 and sold for $26.50 one year later, immediately...

12) Kelly bought a stock at a price of $22.50. She received a $1.75 dividend and...

Nancy Cotton bought 400 shares of NeTalk for $15 per share. One year later, Nancy sold...

You bought a stock one year ago for $50.52 per share and sold it today for...

An investor purchased a stock for $44.95 and sold it one year later for $46.81. The...

You bought a stock a year ago for $50 per share and sold it today for...

You bought a share of stock for. $47.50 that paid a dividend of $.72 and sold...

An investor purchased 500 shares of Electric Shaver Corporation stock at a price of $22.50 per...

Problem 2. [6 pts]. You bought a stock one year ago for $155 per share and...

Last year a portfolio manager at PIB bought two million shares of Volkswagen’s stock at €75...

A stock is bought for $22.50 and sold for $26.00 one year later, immediately after it...

Homework Answers

Add Answer to: A stock is bought for $22.50 and sold for $26.00 one year later, immediately after it...

Post as a guest

Earn Coins

Add Answer to:
A stock is bought for $22.50 and sold for $26.00 one year later, immediately after it...