Question

A particular stock has a dividend yield of 1.3 percent. Last year, the stock price fell from $64 to $59. What was the total percentage rate of return for the year?

Answer 1

The total percentage rate of return for the year is -6.51%

Step-by-step explanation:

Capital Gain Yield = ($59 – $64 )/ $64

= - $5 / $64

= -7.81%

Since the dividend yield is 1.3%:

Total return = -7.81% + 1.3%

= -6.51%

Therefore, The total percentage rate of return for the year is -6.51%