Suppose a stock had an initial price of $87 per share, paid a dividend of $1.80 per share during the year, and had an ending share price of $73.00. a. Compute the percentage total return. Note: 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? Note: 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? Note: 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.

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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Please help, I'm just stuck on the middle, i dont know where my calculations went wrong!

Suppose a stock had an initial price of $87 per share, paid a dividend of $1.80 per share during the year, and had an ending share
price of $73.00.
a. Compute the percentage total return.
Note: 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?
Note: 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?
Note: 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.
Answer is complete but not entirely correct.
a. Percentage total return
b. Dividend yield
c. Capital gains yield
-14.02%
2.40
%
-16.09 %
Transcribed Image Text:Suppose a stock had an initial price of $87 per share, paid a dividend of $1.80 per share during the year, and had an ending share price of $73.00. a. Compute the percentage total return. Note: 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? Note: 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? Note: 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. Answer is complete but not entirely correct. a. Percentage total return b. Dividend yield c. Capital gains yield -14.02% 2.40 % -16.09 %
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ISBN:
9781337912020
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Publisher:
South-Western College Pub