A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $58. A. What are the dividend yield and percentage capital gain? B. Now suppose the year-end stock price after the dividend is paid is $42. 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.)

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $58.

A. What are the dividend yield and percentage capital gain?

B. Now suppose the year-end stock price after the dividend is paid is $42. 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.)

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Total yield is divided into Dividend yield and % capital gain yield

 

 

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