Realized Returns, capital gain yield, dividend yield: Realized returns refer to the actual returns that are earned during the holding period of an investment. Realized returns include dividends, interest payments, and cash distributions. It is acquired though the movement of prices of stocks from one period to another or from time to time. The movement in price reflects the changes that occur until the holding period of time of an investment. It carries the dividend amount with it. It can be measured in two ways, which are capital gain yield and dividend yield. The change in the prices from one period to another until the holding period or the appreciation that occurred in the market refers to capital gain yield. The increase in the price of a particular stock primarily due to the announcement of a dividend refers to dividend yield. To determine: Whether the (a) capital gain and (b) dividend yield is different when the price of stock fell $5 to $45.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 3P

Summary Introduction

Realized Returns, capital gain yield, dividend yield:

Realized returns refer to the actual returns that are earned during the holding period of an investment. Realized returns include dividends, interest payments, and cash distributions. It is acquired though the movement of prices of stocks from one period to another or from time to time. The movement in price reflects the changes that occur until the holding period of time of an investment. It carries the dividend amount with it. It can be measured in two ways, which are capital gain yield and dividend yield.

The change in the prices from one period to another until the holding period or the appreciation that occurred in the market refers to capital gain yield. The increase in the price of a particular stock primarily due to the announcement of a dividend refers to dividend yield.

To determine:

Whether the (a) capital gain and (b) dividend yield is different when the price of stock fell $5 to $45.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

A key dynamic within any Multi-National Corporation (MNC) is cash and foreign exchange risk exposure. Cash management is critical and also heavily influenced by global dynamics, especially since COVID-19. Within the Caribbean and North American jurisdiction, the economic framework is tightly connected with the major Asian economies of China, the United Kingdom and Japan. The Caribbean and the North American economy have been a barometer of the global economic cycle.) For both Caribbean and North American economies, many Multi-National Corporations have made significant investments to reduce the production cost of goods and diversification benefits. Despite the benefits that could materialize, some North American countries have not been resilient through Global market shocks. Given this context, the following questions require research within the Caribbean context and current market dynamics since COVID-19. Your Manager has asked you to address the following concerns in the report 1)…