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a year ago you bought 100 shares of bradley corp. common stock for $32 per share

ID: 2686156 • Letter: A

Question

a year ago you bought 100 shares of bradley corp. common stock for $32 per share. During the year, you received dividends of $2.50 per share. The stock is currently selling for $33.50 per share. suppose you expect the bradley corporation common stock to be selling for $33 per share in one year, and during the next coming year, you expect to receive dividends of $2 per share. What is the total dividend income expected during the year? the total capital gain during the year? the total dollar return? compute the dividend yield, the capital gains yield, and the total percentage return on a per share basis

Explanation / Answer

total dividend income=2.5x100=$250 dollar return=(33.5-32)*100=150 capital gain=250+150=$400