Gee-Gee common stock returned a nifty 21.6 percent rate of return last year. The dividend amount was $.25 a share which equated to a dividend yield of 1.01 percent. What was the rate of price appreciation for the year?

Question

Quizplus · Accepted Answer

The total rate of return (21.6%) is the sum of the dividend yield (1.01%) and the rate of price appreciation. To find the rate of price appreciation, subtract the dividend yield from the total rate of return: 21.6% - 1.01% = 20.59%.

Gee-Gee Common Stock Returned a Nifty 21