Respuesta :
the dividend yield is 4% and the percentage capital gain is -12% in this case.
Rate of Return=(capital gain+Dividend)/Initial Price
=[(59-50)+2]/50=22%
b). Dividend yield = dividend/initial share price = $2/$50 = 0.04 = 4%
Capital gains yield = capital gain/initial share price = $9/$50 = 0.18 = 18%
c) Dividend yield = dividend/initial share price = $2/$50 = 0.04 = 4%
Capital gains yield = capital gain/initial share price = $-6/$50 = -0.12 = -12%
In finance, return is earnings on funding. It comprises any exchange in the price of the funding, and/or coins flow (or securities, or different investments) that the investor receives from that funding, inclusive of interest bills, coupons, coins dividends, inventory dividends, or the payoff from a derivative or established product. it could be measured either in absolute phrases (e.g., greenbacks) or as a percent of the amount invested. The latter is also known as the preserving period go back. A loss rather than an income is defined as a poor return, assuming the quantity invested is greater than zero.
To evaluate returns through the years durations of different lengths on an identical foundation, it's far more beneficial to transform every return right into a go-back over a period of time of a well-known period. The result of the conversion is called the rate of going back. typically, the time period is a year, in which case the charge of return is also known as the annualized go-back, and the conversion system, described underneath, is referred to as annualization.
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