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A stock is selling today for $60 per share. At the end of the year, it pays a dividend of $3 per share and sells for $63.

a. What is the total rate of return on the stock? (Enter your answer as a whole percent.)

b. What are the dividend yield and percentage capital gain? (Enter your answers as a whole percent.)

c. Now suppose the year-end stock price after the dividend is paid is $54. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)

d. Is there any change in the dividend yield calculated in parts (b) and (c)?

For Part D, it is either affected/unaffected and it is based on intial price/first price. Choose one of each

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92742914

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