Question
Suppose you bought 650 shares of stock at an initial price of $48 per share. The stock paid a dividend of $.50 per share during
Suppose you bought 650 shares of stock at an initial price of $48 per share. The stock paid a dividend of $.50 per share during the following year, and the share price at the end of the year was $43.
a. Compute your total dollar return on this investment. (A negative value should be indicated by a minus sign.)
Dollar return:
b. What is the capital gains yield? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Capital Gains Yield:
c. What is the dividend yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Dividend Yield:
d. What is the total rate of return on the investment? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Total rate of return:
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