The price of a stock at the end of each of the past three years has been $14, $12, and $11 with $11 being the latest price. The stock pays an annual dividend of $1 per share. What is the average annual capital gain for the past two years? The average annual total return?

The average annual capital gain for the past two years is -0.114 (-11.4%).

The average annual total return is -0.043 (-4.3%)

Explanation:

We can calculate the average annual capital gain as:

As the stocks pays an annual dividend of $1, the dividend return can be calculated as:

The average annual total return can be calculated as the addition of both the annual capital gain and the dividend return.

the answer is i don't know

answer; yield to maturity;