=+Problem 6.2 An investor buys 100 shares of company X at $20 per share. The company pays

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=+Problem 6.2 An investor buys 100 shares of company X at $20 per share. The company pays a dividend of $2 per share. By the end of the year, the shares of company X are trading at $25 per share.

a. Calculate the dividend yield.

b. Calculate the capital gain yield.

c. Calculate the total return to the investor.

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Corporate Finance For Business The Essential Concepts

ISBN: 9783030924188

2nd Edition

Authors: Ronny Manos, Keith Parker, D. R. Myddelton

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