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1. Calculating Returns [LO1] Suppose a stock had an initial price of $79 per share, paid a dividend of $1.45 per share during the
1. Calculating Returns [LO1] 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 $88. Compute the percentage total return. 2. Calculating Yields [LO1] In Problem 1, what was the dividend yield? The capital gains yield? 3. Return Calculations [LO1] Rework Problems 1 and 2 assuming the ending share price is $71. Calculating Returns [LO1] Suppose you bought a bond with an annual coupon of 7 percent one year ago for $970. The bond sells for $940 today. a. Assuming a $1,000 face value, what was your total dollar return on this invest- ment over the past year? b. What was your total nominal rate of return on this investment over the past year? c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? What was the average annual return on BA (Q
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