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Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during
Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41.
a. What is the capital gains yield? (Enter your answer as a percent rounded to 2 decimal places.)
b. What is the dividend yield? (Enter your answer as a percent rounded to 2 decimal places.)
c. What is the total rate of return on the investment? (Enter your answer as a percent rounded to 2 decimal places.)
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