Suppose a stock had an initial price of $54 per share, paid a dividend of $1

Finance Nov 13, 2020

Suppose a stock had an initial price of $54 per share, paid a dividend of $1.30 per share during the year, and had an ending share price of $64. What was the dividend yield and the capital gains yield? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Dividend yield Capital gains yield % %

Expert Solution

The answers to the given question are provided in the order below

1.
=1.3/54=2.40740740740741%

2.
=64/54-1=18.5185185185185%

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