Suppose a stock had an initial price of $66 per share, paid a dividend of $1.70

Question

Suppose a stock had an initial price of $66 per share, paid a dividend of $1.70 per share during the year, and had an ending share price of $59.

Compute the percentage total return. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

What was the dividend yield and the capital gains yield? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Suppose a stock had an initial price of $66 per share, paid a dividend of $1.70 per share during the year, and had an ending share price of $59.

Explanation / Answer

Intial Price - $66

Ending price - $59

Dividend - $1.7

dividend yield - $1.7/66 = 0.04%

Capital gain yield - (59-66)/66 = -10.61%

Total Return - -6.974/66 = -10.57%

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