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A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $2 per share and sells
A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $2 per share and sells for $59.
Required:
a. What is the total rate of return on the stock? _______%
b. What are the dividend yield and percentage capital gain? ______% ______%
c. Now suppose the year-end stock price after the dividend is paid is $44. What are the dividend yield and percentage capital gain in this case? ________% ______%
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