Question

Over a period of one year, PepsiCo stocks have a total percentage return of -3.25%, capital gains yield of -6.35%, and a current price of $68.98. How much dividends per share did PepsiCo pay during the last year?

Answer 1

1]	Ending price (current) = Beginning price*(1+capital gains yield)
	Therefore, beginning price = 68.98/(1-6.35%) =	$            73.66
2]	Total return = Capital gains yield+Dividend yield
	Dividend yield = -3.25%-(-6.35%) =	3.10%
3]	Therefore, dividend last year = beginning price*dividend yield
	= 73.66*3.10% = 2.283, rounded off to 2.28	$              2.28
	VERIFICATION:
	Total yield = (Dividend+Ending price-Beginning price)/Beginning price
	= (2.283+68.98-73.66)/73.66 =	-3.25%