Gareth owns 1 share of stock A and 1 share of stock B.  In 1 year from today, the total value of his holdings is expected to be 119.42 dollars.  Stock A is currently priced at 47.13 dollars, has an expected return of 12.58 percent, and is expected to pay a dividend of 6.54 dollars in 1 year from today.  Stock B is currently priced at 74.88 dollars and is expected to pay a dividend of 5.93 dollars in 1 year from today.  What is the expected return for stock B?  Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

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Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.