McCoy Paid a One-Time Special Dividend of $3

question 69

Multiple Choice

McCoy paid a one-time special dividend of $3.20 on 18 October 2012. Suppose you bought McCoy stock for $47.00 on 18 July 2012, and sold it immediately after the dividend was paid for $63.32. What was your realised return from holding McCoy?

• A) 6.8%
• B) 41.5%
• C) 34.7%
• D) 4.15%

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Definitions:

Determination

The firmness of purpose or the process of establishing something exactly by calculation or research.

Goodness Of Fit

A statistical analysis to determine how well sample data fit a distribution from a population with a normal distribution.

Regression Equation

The equation that describes how the mean or expected value of the dependent variable is related to the independent variable; in simple linear regression, E(y) = b0 + b1x.

Estimated Income

The projection or approximation of income over a specified future period, often based on historical data and current trends.