Question

A particular stock has a dividend yield of 1.7 percent. Last year, the stock price fell...

A particular stock has a dividend yield of 1.7 percent. Last year, the stock price fell from $84 to $70. What was the return for the year? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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Answer #1

The stock price fell from $84 to $70.

Thus, The capital gains yield is $(84 − 70)/$84 = -0.1667 or -16.67%

With a dividend yield of 1.7 percent, the total return = (-16.67 + 1.70)%

= .-14.97%

Thus, the return for the year = - 14.97%

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