21 If a stocks price is 20 at the beginning of a year and S1

21. If a stock\'s price is $20 at the beginning of a year and S17 at the end of the year and it pays a dividend of S2 during the year, then the stock\'s current yield ispercent. 22. If a stock\'s price is $20 at the beginning of a year and $17 at the end of the year, and it pays a dividend of $2 during the year, then the stock\'s capital gain is percent,

Solution

Current yield=Dividend/Current price

= (2/20)=10%

Capital gain =(End price-Beginning price)/Beginning price

=(17-20)/20=(15%)(Negative).