1. Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41. Compute your total dollar return on this investment.
2. Calculating Yields (LO1, CFA1) In the previous problem, what is the capital gains yield? The dividend yield? What is the total rate of return on the investment?
3. Calculating Returns (LO1, CFA1) Rework Problems 1 and 2 assuming that you buy 500 shares of the stock and the ending share price is $34. (needs to be answered)