A year ago,you bought some shares of CIA Company,which pays equal quarterly dividends.The income yield and the capital gain yield are 4.38 percent and 9.5 percent,respectively.The current price of CIA is $18.What was the quarterly dividend that CIA paid during the year?
A) $0.18
B) $0.41
C) $0.72
D) $1.64

Question

Quizplus · Accepted Answer

Compute last year price,P₀ = $18/(1+9.5%)= $16.4384 Dividend is ($16.4384 x 0.0438)/4 = $0.18

A Year Ago,you Bought Some Shares of CIA Company,which Pays