Suppose a stock had an initial price of $101 per share, paid a dividend of $2.30

Question

Suppose a stock had an initial price of $101 per share, paid a dividend of $2.30 per share during the year, and had an ending share price of $123.

Compute the percentage total return. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

What was the dividend yield? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

What was the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Compute the percentage total return. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Explanation / Answer

Total return =   [ ($123- $101)+$2.30} /$101 ]*100 Total return = {$24.3/$101}*100 Total return = 24.06% Dividend yeild =($2.30$/101)*100 Dividend yeild = 2.28 % Capital gain yeild ={ ($123-$101)/101 } *100 Capital gain yeild = 21.78%

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