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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
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 $87
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 $72. 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 | % |
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