Question: 1. Calculating Returns (5 points) Firm A pays $0.80 a year as dividends on its common stock. Currently this stock sells for $28.12 a share.

 1. Calculating Returns (5 points) Firm A pays $0.80 a year

1. Calculating Returns (5 points) 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. o What is the total return on this stock in dollars? = o Dollar return income + capital gain What is the percentage total return? Percentage total return = dollar return / beg. price = dividend yield + capital gains yield Capital gains yield = (end. price beg. price)/beg. Price Dividend yield = income/beg. Price =

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