Problem:
Suppose that you have bought the stock of "Stacy Inc." at the price of $80 per share and hold that for last two months and then sold that for $ 84. During this two month period, the stock has paid $2.00 of dividend.
Required:
Question 1: Calculate the two-month period Holding Period Return for the "Stacy Inc."
Question 2: What was the dividend yield and what was the capital gains yield?
Question 3: What is the APR for "Stacy Inc." stock?
Question 4: What is the EAR for "Stacy Inc." stock?
Note: Please show how to work it out.