Suppose a stock had an initial price of $103 per share, paid a dividend of $2.40

Question

Suppose a stock had an initial price of $103 per share, paid a dividend of $2.40 per share during the year, and had an ending share price of $126.

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).)

Suppose a stock had an initial price of $103 per share, paid a dividend of $2.40 per share during the year, and had an ending share price of $126.

Explanation / Answer

A Initial Share Price $ 103.00 (Given) B Dividend $     2.40 (Given) C Ending Share Price $ 126.00 (Given) D Return $   25.40 (B+C)-A E Return % 24.66% (D/A)*100 F Dividend Yield 2.33% (B/A)*100 G Capital Gains Yield 22.33% ((C-A)/A)*100

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