Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) Suppose a stock had an initial price of $50 per share, paid a dividend of $.80 per share during the year, and had an

1) Suppose a stock had an initial price of $50 per share, paid a dividend of $.80 per share during the year, and had an ending share price of $60.

Compute the percentage total return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Total return

%

2) Suppose a stock had an initial price of $50 per share, paid a dividend of $.80 per share during the year, and had an ending share price of $60.

What was the dividend yield and the capital gains yield? (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

%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Directors Handbook

Authors: Glynis D Morris, Sonia McKay, Andrea Oates

5th Edition

1566768691, 978-1566768696

More Books

Students also viewed these Finance questions

Question

Distinguish accrual-basis accounting from cash-basis accounting.

Answered: 1 week ago

Question

1. Construct and interpret control charts for nonconformities

Answered: 1 week ago