Nancy Cotton bought 400 shares of NeTalk for $15 per share One year later, Nancy sold the stock for $21 per share, just after she received a $0 90 cash dividend from the company a What is the total dollar return earned by Nancy for the year b What is the rate of return earned by Nancy c Separate th...

a Total dollar return 40021 1 ...

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

Question:

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

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...