Suppose a stock had an initial price of $86 per share, paid a dividend of $1.80

Question

Suppose a stock had an initial price of $86 per share, paid a dividend of $1.80 per share during the year, and had an ending share price of $74.

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.)

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.)

Suppose a stock had an initial price of $86 per share, paid a dividend of $1.80 per share during the year, and had an ending share price of $74.

Explanation / Answer

total return = (1.80+74)/86 - 1 = -11.86%

dividend yield = 1.80/86 = 2.09%

capital gains yield = 74/86 - 1 = -13.95%

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