Suppose a stock had an initial price of $86 per share, paid a dividend of $1.70 per share during the year, and had an ending share priceof $12.50. Compute the percentage total return. What was the dividend yield? What was the capital gains yield?

Percentage Return:= (Closing price + Receipts - Opening price) / Opening price x 100= (72.50 + 1.70…

Answered: Suppose a stock had an initial price of…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section7.4: Valuing Common Stocks

Problem 3ST

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Suppose a stock had an initial price of $86 per share, paid a dividend of $1.70 per share during the year, and had an ending share price of $12.50. Compute the percentage total return. What was the dividend yield? What was the capital gains yield?