Nabina Basnet bought 400 shares of ABC Company for Rs 150 per share. One year later, Nabina sold the stock for Rs 210 per share, just after she…
BBA Investment Analysis · 2025 · Solved Question with Answer
Nabina Basnet bought 400 shares of ABC Company for Rs 150 per share. One year later, Nabina sold the stock for Rs 210 per share, just after she received a Rs 9 cash dividend from the company.
a. What is the total rupee return earned by Nabina for the year?
b. What is the rate of return earned by Nabina?
c. Separate the rate of return computed in part (b) into the dividend yield and the capital gain. In other words, compute the dividend yield and the capital gain that Nabina earned by holding ABC company for one year.