Suppose a stock had an initial price of $102 per share, paid a dividend of $3.30

Question

Suppose a stock had an initial price of $102 per share, paid a dividend of $3.30 per share during the year, and had an ending share price of $80.50.
  
Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
  
Percentage total return             %

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

Dividend yield             %

What was the capital gains yield? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
  
Capital gains yield             %

Explanation / Answer

Percentage total return = ( Ending Price-Initial Price)+Dividend)/Initial Price Percentage total return =(( 80.50-102)+3.30)/102 = -0.17843 -17.84% Dividend yield = Dividend/Initial price*100 3.30/102*100 = 3.24 % Capital gains yield=( Ending Price-Initial Price)/Initial Price*100 Capital gains yield=(80.5-102)/102*100 = -21.0784 ie. -21.08%

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.