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At the beginning of the year, you purchased a share of stock for $55. Over the...

At the beginning of the year, you purchased a share of stock for $55. Over the year the dividends paid on the stock were $2.50 per share.

a. Calculate the return if the price of the stock at the end of the year is $50. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))
b. Calculate the return if the price of the stock at the end of the year is $60. (Round your answer to 2 decimal places. (e.g., 32.16))

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Answer #1


solution: Part a: Returns(P1+D-P0)/P0 | -4.55% (50+2.5-55)/55 Price at the end of year 1 Purchase price Dividend Part b: Retu

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