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Calculate the total return, the dividend yield and the capital gains yield. Supp

ID: 2797840 • Letter: C

Question

Calculate the total return, the dividend yield and the capital gains yield.

Suppose a stock had an initial price of $79 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of S71. What was the total return? What was the dividend yield? The capital gains yield? Initial price Dividend paid Ending share price $ 79 1.45 71 10 Complete the following analysis. Do not hard code values in your calculations. 12 13 14 15 16 17 18 19 20 Total return Dividend vield Capital gains yield

Explanation / Answer

Total return=(End price-Beginning price+Dividends)/Beginning price

=(71-79+1.45)/79=(8.29%)(Negative)

Dividend yield=Dividend/Beginning price

=(1.45/79)=1.84%

Capital gains yield=(End price-Beginning price)/Beginning price

=(71-79)/79=(10.13%)(Negative)

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