Suppose a stock had an initial price of $85 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $72.00. a. Compute the percentage total return. (A negative answer should be indicated by a minus sign. 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? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What was the capital gains yield? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage total return a. b. Dividend yield % %

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
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Suppose a stock had an initial price of $85 per share, paid a dividend of $1.60 per share
during the year, and had an ending share price of $72.00.
a. Compute the percentage total return. (A negative answer should be indicated by a
minus sign. 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? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c. What was the capital gains yield? (A negative answer should be indicated by a minus
sign. Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
a.
b. Dividend yield
Percentage total return
C.
Capital gains yield
%
%
%
Transcribed Image Text:Suppose a stock had an initial price of $85 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $72.00. a. Compute the percentage total return. (A negative answer should be indicated by a minus sign. 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? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What was the capital gains yield? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. Dividend yield Percentage total return C. Capital gains yield % % %
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