a. suppose that, one year ago, you bought 100 shares of Zimmer Corporation common stock for $32 per share. During the year, you received dividends of $2.50 per share. Bradley common stock is currently selling for $33.50 per share. What was your total dividend income during the year? How much did you earn in capital gains? What was your total dollar return? Use this dollar returns to calculate the dividend yield, capital gains yield and total percentage return for this investment.

b. define the three form of market efficiency.

c. explain why it is that in an efficient market, investment have an expected NPV of zero.

Answer rating: 100% (QA)

a V03200 div250 V13350 Now Dollar return25033503200 400 Capital gain yield1503200 469 Dividend yield2503200 781 Total percentage yield125 b The three ... View the full answer