One year ago you bought Superior stock for $83.00 per share. You received four quarterly dividends over the past year of $1.23 each. Now the stock is selling for $71.00 per share. What is your dollar return for the past year? _________________ What is the dividend yield? ____________________ What is the capital gains yield? _________________ What is the total yield? _____________________

Respuesta :

Answer:

1. $ -7.08

2. 5.93%

3. -14.46%

4. -8.53%

Explanation:

The Total Dividend Received = $ 1.23 × 4 = $ 4.92

A.  Dollar Return = ( Selling Price - Purchase Price ) + Dividend Received

= ( $ 71 - $ 83) + $ 4.92

= $ -7.08

My dollar return for the past year is  $ -7.08

B.  Dividend yield = (Annual Dividend / Purchase Price) × 100

= ($4.92/$83)×100

= 5.93%

The dividend yield is 5.93%

C.  Capital Gains Yield = (( Selling Price - Purchase Price ) / Purchase Price) ×100

= (( $71 - $83) / $83)× 100

= -14.46%

 The capital gains yield -14.46%

D.  Total Yield =

((( Selling Price - Purchase Price ) + Dividend Received )/ Purchase Price) ×100

= ((( $71 - $83) + $ 4.92 ) / $ 83) ×100

= -8.53%

The total yield is -8.53%.