Nicole Watson Purchased a Share of McAllister Inc

question 76

Short Answer

Nicole Watson purchased a share of McAllister Inc., a year back when it was trading at $75. She also earned a dividend of $4 on this. The price of the same share has now increased to $87.
A) Compute the annual capital gain from this share.
B) Compute the annual income yield from this share.

• A) Compute the annual capital gain from this share.
• B) Compute the annual income yield from this share.

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Definitions:

Confidence Interval

A span of numbers, originating from sample data, which probably encompasses the value of an unspecified population characteristic.

Degrees of Freedom

The number of independent values or quantities that can vary in the analysis of statistical data, which are necessary to calculate a statistic.

Partial ANOVA Table

A table that presents results from an Analysis of Variance test, but might not include all elements typically found in a full ANOVA table, such as missing data on certain variables or groups.

F-Distribution

A probability distribution that arises frequently as the null distribution of a test statistic, especially in variance analysis and ANOVA.