Question

A stock is selling today for $47 per share. At the end of the year, it...

A stock is selling today for $47 per share. At the end of the year, it pays a dividend of $2 per share and sells for $52.

                                   

What is the total rate of return on the stock? (Round your answer to 2 decimal places.)
Total rate of return %
What is the dividend yield? (Round your answer to 2 decimal places.)
Dividend yield        %
What is capital gains yield? (Round your answer to 2 decimal places.)
Capital gains yield      %

Homework Answers

Answer #1
Particulars Beginning of year price (A) End of year price (B) Dividend per share (C) Capital gain (D) = (B)-(A) Total Return €=©+(D) Total Return €/A Dividend Yield ©/(A) Capital Gain yield= (D)/(A)
Share 47 52 2 5                     7 14.89% 4.26% 10.64%
Particulars Value
Total return 14.89%
Dividend yield 4.26%
Capital gain yield 10.64%
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