1. Calculating Returns [LO1] Suppose a stock had an initial price of $65 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $71. Compute the percentage total return. 2. Calculating Yields [LO1] In Problem 1, what was the dividend yield? The capital gains yield? 3. Return Calculations [L01] Rework Problems 1 and 2 assuming the ending share price is $58.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1. Calculating Returns [LO1] Suppose a stock had an initial
price of $65 per share, paid a dividend of $1.45 per share
during the year, and had an ending share price of $71.
Compute the percentage total return.
2. Calculating Yields [LO1] In Problem 1, what was the
dividend yield? The capital gains yield?
3. Return Calculations [L01] Rework Problems 1 and 2
assuming the ending share price is $58.
Transcribed Image Text:1. Calculating Returns [LO1] Suppose a stock had an initial price of $65 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $71. Compute the percentage total return. 2. Calculating Yields [LO1] In Problem 1, what was the dividend yield? The capital gains yield? 3. Return Calculations [L01] Rework Problems 1 and 2 assuming the ending share price is $58.
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