Suppose a stock had an initial price of $93 per share, paid a dividend of $2.40

Question

Suppose a stock had an initial price of $93 per share, paid a dividend of $2.40 per share during the year, and had an ending share price of $76.00.

Compute the percentage total return. (Negative amount should be indicated by a minus sign. 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).)

Suppose a stock had an initial price of $93 per share, paid a dividend of $2.40 per share during the year, and had an ending share price of $76.00.

Explanation / Answer

The return of any asset is the increase/decrease in price, plus any dividends or cash flows, all divided by the initial price. The return of this stock is:

       R = [($76

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