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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 $63. 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 $54. What are the dividend yield and percentage capital gain in this case?
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