The company paid a dividend of 25 per share the day before


Calculating returns: now suppose the call money rate is 6 percent and your broker charges you a spread of 1.25 percent over thus rate. You hold the stock for six months and sell at a price of $53 per share. The company paid a dividend of $.25 per share the day before you sold your stock. What is your total dollar return from this investment? What is your effective annual rate of return?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The company paid a dividend of 25 per share the day before
Reference No:- TGS0625128

Expected delivery within 24 Hours