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Suppose a stock had an initial price of $72 per share, paid a dividend of $1.65 per share during the year, and had an ending share price of $85. compute the percentage total return. what was the dividend yield? the capital gains yield?

Respuesta :

Answer:

Dividend Yield(%)= 2.29%

Capital Gains Yield(%) = 18.06%

Percentage Total  Return = 20.35%

Explanation:

percentage total return = ?

dividend yield = ?

capital gains yield = ?

dividend of $1.65 per share during the year

initial price = $72 per share

Dividend Yield(%) = D / P0

Dividend Yield(%) = 1.65/72

Dividend Yield(%)= 2.29%

Capital Gains Yield(%) = (P1 - P0) / P0

= (85-72) / 72

Capital Gains Yield(%) = 18.06%

Percentage Total  Return = Dividend Yield + Capital Gains Yield

= 2.29 + 18.06

Percentage Total  Return = 20.35%

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