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Problem 11-7 Rate of Return (LO2) A stock is selling today for $60 per share. At the end of the year, it pays a dividend
Problem 11-7 Rate of Return (LO2) A stock is selling today for $60 per share. At the end of the year, it pays a dividend of $3 per share and sells for $75. 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 $51. What are the dividend yield and percentage capital gain in this case? Complete this question by entering your answers in the tabs below. Required A Required B Required c What is the total rate of return on the stock? (Enter your answer as a whole percent.) Rate of return % Complete this question by entering your answers in the tabs below. Required A Required B Required C What are the dividend yield and percentage capital gain? (Enter your answers as a whole percent.) % Dividend yield Capital gains yield % Complete this question by entering your answers in the tabs below. Required A Required B Required C Now suppose the year-end stock price after the dividend is paid is $51. 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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