Assignment Papers-Rate Of Return For Stocks And Bonds
Rate Of Return For Stocks And Bonds
Contents Calculations 2 Question 1 2 Question 2 2 Question 3 2 Question 4 3 Question 5 3 Summary 3 Determining the financial value of an asset 4 Investment decisions 4 Financing decisions 5 Dividend policy 5 References 6
| Total Return = (Price at the end – Price at the beginning + Dividend received) / Price at the beginning
= ( 125 – 100 + 2) / 100 = 27% Capital Gain Yield = (Price at the end – Price at the beginning ) / Price at the beginning Dividend Yield = Dividend Received / Price at the beginning Alternatively it can be calculated by deducting capital gain yield from total yield i.e. 27 – 25 = 2% |
