Question: 0 Please show all work. 1. Calculating Returns Firm A pays $0.80 a year as dividends on its common stock. Currently this stock sells for
0 Please show all work. 1. Calculating Returns Firm A pays $0.80 a year as dividends on its common stock. Currently this stock sells for $28.12 a share. Last year, at this time, the stock was selling for $31.64 a share. What is the total return on this stock in dollars? Dollar return income + capital gain What is the percentage total return? Percentage total return = dollar return/beg. price Percentage total return = dividend yield +capital gains yield Capital gains yield = (end. price - beg. price)/beg. Price Dividend yield = income/beg. Price
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