Suppose a stock had an initial price of $113 per share, paid a dividend of $2.90 per share during the year, and had an ending share price of $141. Requirement 1: Compute the percentage total return. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e. g., 32.16).) Percentage total return % Requirement 2: What was the dividend yield

Question

Business

Cadence

20 March, 21:44

Suppose a stock had an initial price of $113 per share, paid a dividend of $2.90 per share during the year, and had an ending share price of $141. Requirement 1: Compute the percentage total return. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e. g., 32.16).) Percentage total return % Requirement 2: What was the dividend yield

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Answers (1)

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Salvador Shea · Answer 1

(a) 27.35%

(b) 2.57%

Explanation:

Given that,

Ending price = $141

Initial price = $113

Dividend = $2.90

(a) Percentage total return %:

= [ (Ending price - Initial price) + Dividend] : Initial price

= [ ($141 - $113) + $2.90] : $113

= 0.2735 or 27.35%

Therefore, the percentage total return 27.35%.

(b) Dividend yield:

= Dividend : Price

= $2.90 : $113

= 0.0257 or 2.57%