Question

If a stock had an initial price of $74 per share, paid a dividend of $1.15...

If a stock had an initial price of $74 per share, paid a dividend of $1.15 per share during the year, and had an ending share price of $87.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The return of any asset is the increase in price, plus any dividends or cash flows, all divided by the initial price. The return of this stock is -

Return = [($87 – 74) + 1.15] / $74 = 0.1912, or 19.12%

Dividend yield = $1.15 / $74 = 0.0155 or 1.55%

Capital gains yield = ($87 – 74) / $74 = 0.1757 or 17.57%

Add a comment
Know the answer?
Add Answer to:
If a stock had an initial price of $74 per share, paid a dividend of $1.15...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT