Rework Problem 1 assuming the ending share price is $54. In Problem 1 Suppose a stock had

Question:

Rework Problem 1 assuming the ending share price is $54.

In Problem 1

Suppose a stock had an initial price of $61 per share, paid a dividend of $1.40 per share during the year, and had an ending share price of $69. Compute the percentage total return. What was the dividend yield? The capital gains yield?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...