A stock is selling today for $20 per share. At the end of the year, it pays a dividend of $1 per share and sells for $22. Dividend yield = ………………………. % Capital gain = ……………………..% Total return = …………………………..
A stock is selling today for $20 per share. At the end of the year, it pays a dividend of $1 per share and sells for $22. Dividend yield = ………………………. % Capital gain = ……………………..% Total return = …………………………..
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Use the following information to answer questions 1 - 3.
A stock is selling today for $20 per share. At the end of the year, it pays a dividend of $1 per share and sells for $22.
Dividend yield = ………………………. %
Total return = ………………………….. %
Expert Solution
Step 1
The dividend yield is a financial ratio that tells you the percentage of a company's share price that it pays out in dividends each year.
A capital gains yield is the rise in the price of a security, such as common stock.
Total return is the actual rate of return of an investment or a pool of investments over a period.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education