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7 January, 03:55

A particular stock has a dividend yield of 1.3 percent. Last year, the stock price fell from $64 to $59. What was the total percentage rate of return for the year?

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  1. 7 January, 04:00
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    The total percentage rate of return for the year is - 6.51%

    Explanation:

    Capital Gain Yield = ($59 - $64) / $64

    = - $5 / $64

    = - 7.81%

    Since the dividend yield is 1.3%:

    Total return = - 7.81% + 1.3%

    = - 6.51%

    Therefore, The total percentage rate of return for the year is - 6.51%
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