2) A stock is selling today for $75 per share. At the end of the year, it...
Question:
2)
A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $6 per share and sells for $78.
a.What is the total rate of return on the stock?(Enter your answer as a whole percent.)
Rate of return%
b.What are the dividend yield and percentage capital gain?(Enter your answers as a whole percent.)
Dividend yield%Capital gains yield%
c.Now suppose the year-end stock price after the dividend is paid is $69. What are the dividend yield and percentage capital gain in this case?(Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)
Dividend yield%Capital gains yield%
d.Is there any change in the dividend yield calculated in parts (b) and (c)?
The dividend yield is(Click to select)
affected
unaffected
; it is based on the(Click to select)
initial price
final price
.