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4 December, 07:48

A particular stock has a dividend yield of 1.5 percent. Last year, the stock price fell from $82 to $68. What was the return for the year? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Return for the year %

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  1. 4 December, 08:01
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    The return for the year is - 15.57%.

    Explanation:

    We have the formula to calculate Return for the year as:

    * Return for the year = Dividend yield + Capital Gain / (Loss).

    in which:

    * Dividend yield is given at 1.5%;

    * Capital Gain / (Loss) = Price at year end / Price at the beginning of the year - 1 = 68/82 - 1 = - 17.07%;

    So we have:

    * Return for the year = Dividend yield + Capital (Loss) = 1.5% - 17.07% = - 15.57%.

    Thus, the answer is - 15.57%.
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