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elaborate the total return into income return and capital yield component. Stock price of Ford Motor Company on July 1st 2017 = $11.19 Stock price

elaborate the total return into income return and capital yield component. image text in transcribed
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Stock price of Ford Motor Company on July 1st 2017 = $11.19 Stock price of Ford Motor Company on September 30th 2020 = $ 6.66 Company has provided quarterly dividend of $ 0.15 per share between the period. So total dividend income per share = 7 * $ 0.15 = $ 1.05 Total retun over the period - Stock price on September 20 2020 - on July 1ST 2017 + dividend paymnet = $ 6.66 - $ 11.19 + $ 1.05 = $ -3.48 Holding period return = Total return / Purchase price = - $ 3.48 / $ 11.19 =- 31.10% So, investor has made loss of 31.10% over the period by holding the stock of Fordm Motor Company. Histroical price data is taken from Yahoo Finance. Dividends & Splits 04 Annual growth rate in dividends is given as= (0.60/0.65)^(1/2)-1=-3.9231%

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