You purchased a stock for 6000 At the end of one quarter the

You purchased a stock for $60.00.  At the end of one quarter, the stock paid a $0.30 dividend and was selling for $63.00.  Calculate your total holding period return and indicate how much was dividend yield and how much was capital gainyield. Accurate your answer to one decimal place.

dividend yield = ?

total holding period return = ?

Solution

Purchase price= $60

Dividend =0.30

Selling price= $63

Total HPR= (Ending price- OPening price + dividend)/ OPening price

= (63-60)+0.3/ 60

= 3.3/60

=5.5%

Dividend yield = 0.3/60 = 0.5%

Capital gain yield = (63-60)/60 = 5%