Question
A stock is selling today for$80 per share. At the end of the year, it pays a dividend of $4 per share and sells for
A stock is selling today for$80 per share. At the end of the year, it pays a dividend of $4 per share and sells for $92.
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$76. What are the dividend yield and percentage capital gain in this case?
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
