Suppose a stock had an initial price of S87 per share, paid a dividend of $1.60

Question

Suppose a stock had an initial price of S87 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $102. 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).) Requirement 3: 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).)

Explanation / Answer

Percentage total return= (102-87+1.60)/87= 19.08%

Dividend Yield= 1.60/87= 1.84%

Capital Gains yield= (102-87)/87= 17.24%

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