Value of the stock climbs

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You invest $5000 in Apple stock (10 shares at $500 per share). At the end of a year, the value of the stock climbs to $550 per share. (Apple probably introduced yet another new version of the iPhone.) Apple also distributes a dividend of $10 per share to its shareholders. What is your pre-tax, one-year return (or yield) on investment if you now sell it? (Please ignore any sales commissions.)

  • 10%
  • 12%
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  • 25%

Reference no: EM131041270

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