Question

A particular stock has a dividend yield of 1.5 percent. Last year, the stock price fell from $82 to $68. What was the return for the year? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Return for the year %

Answer 1

The return for the year is -15.57%.

Step-by-step explanation:

We have the formula to calculate Return for the year as:

* Return for the year = Dividend yield + Capital Gain/(Loss).

in which:

* Dividend yield is given at 1.5%;

* Capital Gain/(Loss) = Price at year end/ Price at the beginning of the year - 1 = 68/82 -1 = - 17.07%;

So we have:

* Return for the year = Dividend yield + Capital (Loss) = 1.5% - 17.07% = -15.57%.

Thus, the answer is -15.57%.