Two years ago, you purchased 100 shares of Coca-Cola Company.Your purchase price was $39 a share, plus

Question:

Two years ago, you purchased 100 shares of Coca-Cola Company.Your purchase price was $39 a share, plus a total commission of $29 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.25 per share for the first year and $1.39 per share the second year. Also, assume that at the end of two years, you sold your Coca-Cola stock for $46 a share minus a total commission of $34 to sell the stock.

a. Calculate the dividend yield for your Coca Cola stock at the time you purchased it.

b. Calculate the dividend yield for your Coca-Cola stock at the time you sold it.

c. Calculate the total return for your Coca-Cola investment when you sold the stock at the end of two years.

d. Calculate the annualized holding period yield for your Coca-Cola investment at the end of the two-year period.

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...