A stock had a total return of 9.62 percent last year.The dividend amount was $.70 a share which equated to a dividend yield of 2.39 percent.What is the dividend growth rate?
A)7.06 percent
B)4.03 percent
C)7.23 percent
D)5.48 percent
E)2.48 percent

Question

Quizplus · Accepted Answer

Total Return = Dividend Yield + Capital Gain
9.62% = 2.39% + Dividend Growth Rate
Dividend Growth Rate = 9.62% - 2.39% = 7.23%

A Stock Had a Total Return of 9