# Solve this HPY prob

Investment in 10,000 common shares of a company for 1 year earned 15.5%. Investor received \$2,500 dividend just prior to the sale of the shares at \$24 per. The price that the investor paid for each share one year earlier was closest to blank.

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Is the 15.5% pure price appreciation, or total return?

Simplify the complicated side; don't complify the simplicated side.

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Total return

P0 = (\$24 + \$2,500/10,000) / 1.155.

Simplify the complicated side; don't complify the simplicated side.

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Do you have the right answer? I calculated it as:

2500/10 000 = 0.25 dividend per share

(24+0.25)/1.155 = 21

Uruk wrote:
Do you have the right answer? I calculated it as:

2500/10 000 = 0.25 dividend per share

(24+0.25)/1.155 = 21

I don’t.

You’re correct.

My brain must have stopped working there for a minute.

Simplify the complicated side; don't complify the simplicated side.

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21% , is it?

Yes.

Gurveer wrote:
21% , is it?

Not percent.

Dollars.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/