Mary Anderson bought 250 shares of Dishport stock when it was selling for $50 per share, and

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Mary Anderson bought 250 shares of Dishport stock when it was selling for $50 per share, and she sold the stock for $55 per share six months later. During the time she held the stock, Mary received two $1 dividend payments from the firm.
a. What was Mary’s six-month holding period return?
b. On an annual basis, what return did Mary earn?

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...
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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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