A stock is selling today for $80 per share. At the end of the year, it pays a dividend of $4 per share and sells for $88.
a. What is the total rate of return on the stock? (Enter your answer as a whole percent.)
Rate of return %
b. What are the dividend yield and percentage capital gain? (Enter your answers as a whole percent.)
Dividend yield %
Capital gains yield %
c. Now suppose the year-end stock price after the dividend is paid is $72. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)
Dividend yield %
Capital gains yield %
d. Is there any change in the dividend yield calculated in parts (b) and (c)?
The dividend yield is (Click to select)affectedunaffected; it is based on the (Click to select)initial pricefinal price.