Suppose a stock had an initial price of $84 per share, paid a dividend of $1.50
ID: 2719781 • Letter: S
Question
Suppose a stock had an initial price of $84 per share, paid a dividend of $1.50 per share during the year, and had an ending share price of $71.50.
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).)
What was the capital gains yield? (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).)
Suppose a stock had an initial price of $84 per share, paid a dividend of $1.50 per share during the year, and had an ending share price of $71.50.
Requirement 1: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).)
Percentage total return % Requirement 2: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).)
Dividend yield % Requirement 3:What was the capital gains yield? (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).)
Capital gains yield %Explanation / Answer
a)Total return = (P1-P0 +D)/P0
= (71.50-84 +1.5) /84
= - 11 / 84
= - .1310 or -13.10%
b)Dividend yield = D /Po
= 1.50 / 84
= .01786 or 1.786%
c)Capital gain yield = (P1 -P0)/ P0
= (71.5 -84 )/84
= -12.5 /84
= -.1488 OR - 14.88%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.