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Suppose a stock had an initial price of $74 per share, paid a dividend of $1.65 per share during the year, and had an ending share price of $83. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Respuesta :

Dividend yield, capital gains yield, and total return as a percentage are, 1.98 percent, 12.16 percent, and - -8.9 percent respectively.

The computations are shown below:

1. For total return:

= {(Ending share price - initial price) + Dividend} ÷ (Initial price) × 100

= {($74 - $83) + $1.65} ÷ ($83) × 100

= - $6.80 ÷ $82 × 100

= - 8.9%

2. Dividend yield:

= (Dividend) ÷ (Initial price) × 100

= $1.65 ÷ $83 × 100

= 1.98%

3. For capital gain yield:

= (Ending share price - initial price) ÷ (Initial price) × 100

= ($83 - $74) ÷ ($74) × 100

= $9 ÷ $82 × 100

= 12.16%

What is Annual Dividend?

An annual dividend is a payment made by an insurance firm to its policyholders each year in the insurance sector. Annual dividends are most frequently given out in combination with plans that provide long-term disability insurance and permanent life insurance.

Learn more about Annual Dividend at https://brainly.com/question/27878436

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