What two components make up the total return to an investor valuing shares of stock ?
the two components are :
1) Dividend payments
2) Capital appreciation
Dividend payments are majorly considered in various models to value a stock.this is one of the component that make up the total return to a investor
holdind period return on a stock = (dividend for the year + year end price - year beginning price) / year beginning price
the difference between year end price and year beginning price is called Capital appreciation.(some times there will be losses also)
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