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One year ago, Barkley's stock sold for $28 a share. During last year, Barkley's paid $1.23 per share in dividends and saw its stock price
One year ago, Barkley's stock sold for $28 a share. During last year, Barkley's paid $1.23 per share in dividends and saw its stock price increase by 7 percent for the year. Today, the firm announced that it will pay $1.30 per share in dividends this year. What do you know with certainty about the performance of Barkley's stock for this year?
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- The dividend yield for this year will be lower than it was last year.
- The total rate of return will be lower this year than it was last year.
- The dividend yield for this year will be higher than it was last year.
- The capital gains yield will be positive.
- The total rate of return will be higher this year than it was last year.
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