You bought a stock one year ago for $50.14 per share and sold it today for $44.1

Question

You bought a stock one year ago for $50.14 per share and sold it today for $44.14 per share. It paid a $1.08 per share dividend today.

a. What was your realized return?

b. How much of the return came from dividend yield and how much came from capital gain?

a. What was your realized return?

The realized return was __________ (Round to two decimal places.)

b. How much of the return came from dividend yield and how much came from capital gain?

The return that came from dividend yield is ___________(Round to two decimal places.)The return that came from capital gain is nothing%. (Round to two decimal places.)

Explanation / Answer

a.realized return=(End value-Beginning value+Dividends)/Beginning value

=(44.14-50.14+1.08)/50.14=(9.81%)(Negative)

b.Dividend yield=Dividend/Beginning value

=(1.08/50.14)=2.15%

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

=(44.14-50.14)/50.14=(11.97%)(Negative)

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