Question
A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells
A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $46.
| What is the total rate of return on the stock? |
| Rate of return | % |
| b. | What are the dividend yield and percentage of capital gain? |
| Dividend yield | % |
| Capital gains yield | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Management Principles And Applications
Authors: Sheridan Titman, John Martin
14th Global Edition
1292349824, 978-1292349824
