# Question: Ralph Rafferty purchased Gold Depot at the beginning of January

Ralph Rafferty purchased Gold Depot at the beginning of January for $25 per share. Ralph received a $1.25 dividend payment from the company at the end of December. At that time, the stock was selling for $27.50 per share. What is Ralph’s return on his investment for the year? What portion of the total return is the dividend yield and what portion is the capital gains yield?

**View Solution:**## Answer to relevant Questions

Using the information provided in 10-33, compute the value of the bond on January 2, 2017, assuming interest rates do not change. What return would investors earn in 2016? What would be the capital gains yield and the ...Your broker offers to sell you some shares of Wingler & Company common stock, which paid a dividend of $2 yesterday. You expect the dividend to grow at a rate of 5 percent per year into perpetuity. The appropriate rate of ...Tapley Corporation’s 14 percent coupon rate, semiannual payment, $1,000 par value bonds mature in 30 years. The bonds sell at a price of $1,353.54, and their yield curve is flat. Assuming that interest rates in the general ...Tanner Technologies Corporation (TTC) has been growing at a rate of 20 percent per year in recent years. This same growth rate is expected to last for another two years.a. If D0 = $1.60, rs = 10%, and gnorm = 6%, what is ...Currently, the risk-free return is 3 percent and the expected market rate of return is 10 percent. What is the expected return of the following three-stock portfolio? Amount Invested Beta$400,000 .......... 1.5 ...Post your question