Question

Suppose a stock had an initial price of $91 per share, paid a dividend of $1.80 per share during the year, and had an ending share price of $108. a. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield

Answer 1

A. 31.65%

B. 1.98

Step-by-step explanation:

A. Calculation to determine the percentage total return

Using this formula

Percentage total return= Increase in price+ Dividends÷ Initial price

Let plug in the formula

R = [($118 - 91) + 1.80] / $91

R=$28.8/$91

R = .3165*100

R=31.65%

Therefore the percentage total return is 31.65%

B. Calculation to determine the Dividend yield

Using this formula

Dividend yield= Dvidend / initial price

Let plug in the formula

Dividend yield = $1.80 / $91

Dividend yield = .0198*100

Dividend yield = 1.98%

Therefore Dividend yield is 1.98%