Suppose a stock had an initial price of $87 per share, paid a dividend of $1.80

Question

Suppose a stock had an initial price of $87 per share, paid a dividend of $1.80 per share during the year, and had an ending share price of $73.00.
  
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

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

=(73-87+1.8)/87=(14.02%)(Approx)(Negative).

Dividend yield=Dividend/Beginning price

=(1.8/87)=2.07%(Approx)

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

(73-87)/87=(16.09%)(Approx).

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