Suppose a stock had an initial price of $90 per share, paid a dividend of $2.10

Question

Suppose a stock had an initial price of $90 per share, paid a dividend of $2.10 per share during the year, and had an ending share price of $74.50. Requirement 1: Compute the percentage total return. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) 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).) What was the capital gains yield? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Explanation / Answer

Percentage total return= (74.50-90+2.10)/90= - 14.88%

Dividend Yield= 2.10/90= 2.33%

Capital Gains yield= (74.50-90)/90= - 17.22%

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