Question: Practice Problem Set (Ch.7) Return, Stock Valuation Question 1: You purchased $5,000 of AAA Company common stock when it was selling for $125 per share.
Practice Problem Set (Ch.7) Return, Stock Valuation Question 1: You purchased $5,000 of AAA Company common stock when it was selling for $125 per share. Today, which is one year after you purchased AAA, you sold the stock for $135. During the past year, AAA paid a quarterly dividend equal to $1.50 per share. (a) What rate of return did you earn on your investment in AAA? (b) What was the dividend yield? (c) What was the capital gains yield
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