Suppose a stock had an initial price of $70 per share, paid a dividend of $2 30 per share during the year, and had an ending share price of $55 Compute the percentage total return, dividend yield, and capital gains yield (A negative answer should be indicated by a minus sign Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e g , 32 16 ) Answer is complete and correct Total return 18 14selected answer correct Dividend yield 3 28selected answer correct Capital gains yield 21 42selected answer correct Refer to Table 12 2 a What was the average annual return on large company stock from 1926 through 2016 in nominal terms (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) b What was the average annual return on large company stock from 1926 through 2016 in real terms (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) Refer to Table 12 2 a What is the historical real return on long term government bonds (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) b What is the historical real return on long term corporate bonds (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 )

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Suppose a stock had an initial price of $70 per share, paid a dividend of $2.30 per share during the year, and had an ending

Suppose a stock had an initial price of $70 per share, paid a dividend of $2.30 per share during the year, and had an ending share price of $55.

Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answer is complete and correct.


Total return	-18.14selected answer correct	%
Dividend yield	3.28selected answer correct	%
Capital gains yield	-21.42selected answer correct	%

Refer to Table 12.2.

a.	What was the average annual return on large-company stock from 1926 through 2016 in nominal terms? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	What was the average annual return on large-company stock from 1926 through 2016 in real terms? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Refer to Table 12.2.

a.	What is the historical real return on long-term government bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	What is the historical real return on long-term corporate bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)