Suppose a stock had an initial price of $61 per share, paid a dividend of $1.40

Question

Suppose a stock had an initial price of $61 per share, paid a dividend of $1.40 per share during the year, and had an ending share price of $69.

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).)

Percentage total return: %

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).)

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).)

Requirement 1:

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).)

Percentage total return: %

Requirement 2:

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).)

  Dividend yield % 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).)

  Capital gains yield %

Explanation / Answer

1) percentage total return = (69-61)+1.40/61 = 0.1541 = 15.41%

2)The Divedendb yeild             = D1/P0

                                                 =$1.40/61

                                                 = 0.02295

                                                 = 2.295%

3)Capitalgain yeild=(endingprice-beging price)/Begining price

                     =(69-61)/61

                     = 8/61

                     =13.11%

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.