Question
A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $3 per share and sells
A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $3 per share and sells for $84.
a. What are the dividend yield and percentage capital gain?(Enter your answers as a whole percent.)
b. 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.)
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
