Use the table for the question(s) below.
Consider the following price and dividend data for Cockatoo Limited:
$\begin{array} { l c c }
\hline \text { Date } & \text { Price (\$) } & \text { Dividend (\$) } \
\hline \text { December 31, 2011 } & \$ 14.64 & \
\hline \text { January 26, 2012 } & \$ 13.35 & \$ 0.10 \
\hline \text { April 28, 2012 } & \$ 9.14 & \$ 0.10 \
\hline \text { July 29, 2012 } & \$ 10.74 & \$ 0.10 \
\hline \text { October 28, 2012 } & \$ 8.02 & \$ 0.10 \
\hline \text { December 30, 2012 } & \$ 7.72 & \
\hline
\end{array}$
-Assume that you purchased Cockatoo shares at the closing price on 31 December 2011 and sold it after the dividend had been paid at the closing price on 26 January 2012. Your total return rate (yield) for this period is closest to:

Question

Use the table for the question(s) below.
Consider the following price and dividend data for Cockatoo Limited:
$\begin{array} { l c c } 
\hline \text { Date } & \text { Price (\$) } & \text { Dividend (\$) } \
\hline \text { December 31, 2011 } & \$ 14.64 & \
\hline \text { January 26, 2012 } & \$ 13.35 & \$ 0.10 \
\hline \text { April 28, 2012 } & \$ 9.14 & \$ 0.10 \
\hline \text { July 29, 2012 } & \$ 10.74 & \$ 0.10 \
\hline \text { October 28, 2012 } & \$ 8.02 & \$ 0.10 \
\hline \text { December 30, 2012 } & \$ 7.72 & \
\hline
\end{array}$
-Assume that you purchased Cockatoo shares at the closing price on 31 December 2011 and sold it after the dividend had been paid at the closing price on 26 January 2012. Your total return rate (yield) for this period is closest to:

Quizplus · Accepted Answer

The total return rate is calculated as the sum of the capital gain (or loss) and the dividend yield. The capital loss is $(13.35 - 14.64) / 14.64 = -8.81\%$. The dividend yield is $0.10 / 14.64 = 0.68\%$. Therefore, the total return is $-8.81\% + 0.68\% = -8.13\%$.

Use the Table for the Question(s) Below -Assume That You Purchased Cockatoo Shares at the Closing Price