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2. Award: 7.69 points Problem 12-2 Calculating Yields (L01) Suppose a stock had an initial price of $82 per share, paid a div
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Answer #1

Dividend yield is calculated using the below fornula:

Dividend yield= Dividend/ Share price

= $1.60/ $92

= 0.0174*100

= 1.74%.

Capital Gains Yield is calculated using the below fornula:

Capital Gains Yield= Current price-original price/Original price*100

= $92 - $82/ $82*100

= $10/ $82*100

= 0.1220*100

= 12.20%.

In case of any query, kindly comment on the solution.

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