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Question 1:
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22.04 Calculating Returns
Suppose a stock had an initial price of $71.00 per share, paid a dividend of $1.65 per share during the year, and
had an ending share price of $85.00. The percentage total return was
8.48
(0%) percent.
(Input answer as
a percent rounded to 2 decimal places without the percent sign.)
22.04 Calculating Returns
Suppose a stock had an initial price of $71.00 per share, paid a dividend of $1.65 per share during the
had an ending share price of $85.00. The percentage total return was
22.04 with a toler
± 1.0%
percent.
(Input answer as a percent rounded to 2 decimal places without the percent si
Total grade:
0.0×1/1 = 0%
Feedback:
The return of any asset is the increase in price, plus any dividends or cash flows, all divided by the initial price. The
return of this stock is:
R = [($85.00 – 71.00) + 1.65] / $71.00
R = 0.2204 or 22.04%
Question 2:
Score 0/1
Your response
Correct response
Calculating Yields
Suppose a stock had an initial price of $79 per share, paid a dividend of $1.75 per share during the year, and had
an ending share price of $98. The dividend yield was
0
(0%)
percent and the capital gains yield was
0
(0%)
percent .
(Input answers as a percent rounded to 2 decimal places, without the percent sign.)
Calculating Yields
Suppose a stock had an initial price of $79 per share, paid a dividend of $1.75 per share during the yea
an ending share price of $98. The dividend yield was
2.22 with a tolerance of ± 1.0%
perc
capital gains yield was
24.05 with a tolerance of ± 1.0%
percent .
(Input answers as
rounded to 2 decimal places, without the percent sign.)
Total grade:
0.0×1/2 + 0.0×1/2 = 0% + 0%
Feedback:
The dividend yield is the dividend divided by the price at the beginning of the period, so:
Dividend yield = $1.75 / $79
Dividend yield = 0.0222 or 2.22%
And the capital gains yield is the increase in price divided by the initial price, so:
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This note was uploaded on 10/10/2010 for the course FIN 301 taught by Professor Andelin,stevenle during the Spring '07 term at Pennsylvania State University, University Park.
 Spring '07
 ANDELIN,STEVENLE
 Corporate Finance

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