Suppose a stock had an initial price of $64 per share, paid a dividend of $1.40

Question

Suppose a stock had an initial price of $64 per share, paid a dividend of $1.40 per share during the year, and had an ending share price of $57.

Compute the percentage total return. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Total return %

What was the dividend yield and the capital gains yield? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Dividend yield %

Capital gains yield %

Explanation / Answer

Ans) Particulars Amount Intial Price of the Share $64 Dividend $       1.40 Ending Price of the Share $57 Capital gain/ loss ($7) Total Return $    (5.60) Total Return = Total Return / Initial Price of the Share = 5.60/64*100 = 8.75% Dividend Yield = Dividend Per share / Market Price of Share = 1.40/64 = 2.19% Capital Gian/ Loss Yield = P1-P0/P0 57-64/64 -10.94%

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