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You bought a stock one year ago for $50 per share and sold it today for $55 per share. It paid a $1 per share
You bought a stock one year ago for $50 per share and sold it today for $55 per share. It paid a $1 per share dividend today.
a. What was your realized return?
b. How much of the return came from dividend yield and how much came from capital gain?
c. Assume that the stock fell $5 to $45 instead. How much of the return came from dividend yield and how much came from capital gain?
d. Is your capital gain different? Why or why not?
e. If your dividend yield different? Why or why not?
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