Suppose a stock had an initial price of $87 per share, paid a dividend of $1.60

Question

Suppose a stock had an initial price of $87 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 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? (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

% total return=(End price-Beginning price+Dividends)/Beginning price

=(102-87+1.6)/87=19.08%(Approx)

Dividend yield=Dividend/Beginning price

=(1.6/87)=1.84%(Approx)

Capital gaisn yield=(End price-Beginning price)/Beginning price

=(102-87)/87=17.24%(Approx)

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