Question 5 (of 10) Save&Exit; Submit 5. 10.00 points Suppose a stock had an init
ID: 2784621 • Letter: Q
Question
Question 5 (of 10) Save&Exit; Submit 5. 10.00 points Suppose a stock had an initial price of $113 per share, paid a dividend of $2.90 per share during the year, and had an ending share price of $141 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 vield What was the capital gains yield? (Do not round intermediate calculations and % 7 - enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Capital gains yield % References Worksheet Learning Objective: 10-01 Calculate the return on an investment Difficulty: 1 Basic Section: 10.1 Returns Check my workExplanation / Answer
% total return=(End price-Beginning price+Dividends)/Beginning price
=(141-113+2.9)/113=27.35%
Dividend yield=Dividend/Beginning price
=(2.9/113)=2.57%
Capital gains yield=(End price-Beginning price)/Beginning price
=(141-113)/113=24.78%(Approx)
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.