Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was $33 a share,

Question:

Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was $33 a share, plus a total commission of $29 to purchase the stock. During the last two years, you have received the following amounts: $0.94 per share for the first year, and $1.12 per share, the second year. Also assume that at the end of two years, you sold your Coca-Cola stock for $40 a share minus a total commission of $34 to sell the stock.
a. Calculate the yield for your Coca Cola stock at the time you purchased it.
b. Calculate the 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...