Yesterday Sandi sold 1,000 shares of stock that she owned for $45 per share. When she purchased the stock two years ago, Sandi paid $50 per share. Every three months during the time that she held the stock, Sandi received a quarterly dividend equal to $0.50 per share. A total of eight dividends were received.
(a) What return (yield) did Sandi earn during the two years she held the stock?
(b) If the price of the stock was $45 per share one year ago, what return did Sandi earn in each year she held the stock?