RWJ 7th Edition Solutions - Colby College

And the capital gains yield is the increase in price divided by the initial price, so: Capital gains yield = ($72 – 64) / $64 = .1250 or 12.50%. 3. Using the equation for total return, we find: R = [($55 – 64) + 1.75] / $64 = –.1133 or –11.33%. And the dividend yield and capital gains yield are: Dividend yield = $1.75 / $64 = .0273 or 2.73% ................
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