An investor has just sold her Facebook (FB) common stock after buying a single share exactly one year ago. The price she received for her share was $261.50 (which means P₂₀₂₁ = $261.50), and her one-year total yield on this stock was 14.25%, which means r_E = 14.25%. Of this total yield of 14.25% her dividend yield was 6.75%. 

What price did she pay for her FB stock one year ago?

Answer rating: 100% (QA)

SOLUTION To find the price the investor paid for her FB stock one year ago we can use ... View the full answer