Question

You bought a stock one year ago for $51.29 per share and sold it today for $45.68 per share. It paid a $1.24 per share dividend today. a. What was your realized return? b. How much of the return came from dividend yield and how much came from capital gain? a. What was your realized return? The realized return was nothingm%. (Round to two decimal places.) b. How much of the return came from dividend yield and how much came from capital gain? The return that came from dividend yield is nothingm%. (Round to two decimal places.) The return that came from capital gain is nothingm%. (Round to two decimal places.)

Answer 1

1)

Realized return = [(Ending value + dividends - beginning value) / beginning value] * 100

Realized return = [(45.68 + 1.24 - 51.29) / 51.29] * 100

Realized return = -8.52%

2)

Dividend yield = (Dividend / beginning price) * 100

Dividend yield = (1.24 / 51.29) * 100

Dividend yield = 2.42%

3)

Capital gains yield = [(Ending value - beginning value) / beginning value] * 100

Capital gains yield = [(45.68 - 51.29) / 51.29] * 100

Capital gains yield = -10.94%