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 = …………………………..

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 = ………………………. %
 
Capital gain = ……………………..%
 
Total return = ………………………….. %
 
Expert Solution
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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.

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