1 - 2 Capital Gains Yield =($82.00-$73.00/$73.00 =.1233 or 12.33 Dividend Yield = $0.88/$73.00 =.0121 or 1.21 Total Return =.1233.0121 = 13.54 7

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1. Capital Gains = 100 shares * ($82.00-$73.00) = $900.00 Dividend = 100 shares * $0.88 = $88.00 Total Dollar Return = $900.00 + $88.00 = $988.00 No the answer does not change because whether you actually sell your stock and “realize” the gain has nothing to do with what your stock is worth and could be sold for.
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Unformatted text preview: 2. Capital Gains Yield = ($82.00-$73.00)/$73.00 = .1233 or 12.33% Dividend Yield = $0.88/$73.00 = .0121 or 1.21% Total Return = .1233 + .0121 = 13.54% 7. Capital Gains Yield = ($59.00-$65.00)/$65.00 = -.0932 or -9.23% Dividend Yield = 1.7% Total Return = -.0923 + .017= -7.53% 8....
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This note was uploaded on 01/23/2012 for the course MGT 111 taught by Professor Unknown during the Spring '11 term at Washington State University .

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