, Verizon 8:26 PM ezto.mheducation.com Chapters 10/11 Homework Suppose a stock h

Question

, Verizon 8:26 PM ezto.mheducation.com Chapters 10/11 Homework Suppose a stock had an initial pr connect. FINANCE Chapters 10/11 Homework Question 1 (of 6) .50 points Suppose a stock had an initial price of $121 per share, paid a dividend of $3.30 per share during the year and had an ending share price of $153 Requirement 1: Compute the percentage total retum. (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 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 196 References eBook & Resources Worksheet Difficulty: Basic Leaming Objective: 10-01 Calculat

Explanation / Answer

ANSWERE:

REQUIREMENT 1

% OF TOTAL RETURN = DIVDEND + ( Price of share at the end of the year - price of the share at the beging) /

  price in the begining of the year

= 3.3+ (153-121) / 121 *100 = 29.17%

REQUIREMENT 2

DIVIDEND YEILD = DIVIDEND PAID DURING THE YEAR / PRICE OF SHARE AT THE END OF THE YEAR

3.3/153*100 = 2.156%

REQUIREMENT 3

CAPITAL GAIN YEILD = (Price at the end - price the beginging) / price the beginging

= (153-121) /121 * 100 = 26.45%

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