Answer :
The return on this stock investment is -11.845%, which means that the investor would experience a negative return. The negative return suggests that the stock's decline in value, represented by the capital gain yield of -16.07%, is greater than the dividend payment represented by the dividend yield of 4.225%.
To calculate the return on a stock investment, we need to consider the dividend payment and the change in the stock's value.
First, let's calculate the dividend yield. The dividend yield is the dividend payment divided by the stock's current price. In this case, the dividend payment is $2.6 and the stock's current price is $61.6.
Dividend yield = (Dividend payment / Stock price) * 100
Dividend yield = ($2.6 / $61.6) * 100
Dividend yield = 4.225%
Next, let's calculate the capital gain yield. The capital gain yield is the change in the stock's value divided by the stock's current price. In this case, the change in the stock's value is the difference between its future value and its current value, which is $51.7 - $61.6 = -$9.9.
Capital gain yield = (Change in stock value / Stock price) * 100
Capital gain yield = (-$9.9 / $61.6) * 100
Capital gain yield = -16.07%
Finally, to calculate the overall return, we can add the dividend yield and the capital gain yield together.
Overall return = Dividend yield + Capital gain yield
Overall return = 4.225% + (-16.07%)
Overall return = -11.845%
Therefore, the return on this stock investment is -11.845%, indicating a negative return.
Learn more about stock from the below link:
https://brainly.com/question/26128641
#SPJ11
