Question

zoe bought shares of stock on january 1 at a price of $43.00 per share. During...

zoe bought shares of stock on january 1 at a price of $43.00 per share. During the year, zoe received four quarterly dividends of $1.80 per share. on december 31, zoe checked the price of the stock and it was $47.50.

what is the total dollar return that zoe received for the year?

what is the dividend yield that zoe received?

what was zoe's capital gains yield?

what was the total yield for the year?

Homework Answers

Answer #1

Total Dollar Return = Price at end - Purchase Price + Dividends

= $ 47.50-43+($1.80*4)

= $ 11.70

Answer = $ 11.70

The dividend yield = Total Dividends / Purchase Price *100

= ($ 1.80*4) / $ 43*100

= 16.74%

Answer = 16.74%

capital gains yield = (Price at end - Purchase Price) / Purchase Price *100

= ($ 47.50-43) / $ 43*100

= 10.47%

Answer = 10.47%

The total yield = ( Price at end - Purchase Price + Dividends) / Purchase Price *100

= $ 11.70 / $ 43*100

= 27.21%

Answer =  27.21%

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