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A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells
A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $54. |
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 $43. 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)affectedunaffected; it is based on the (Click to select)initial pricefinal price. |
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