Answer: 0.2059
Explanation:
From the question, we are informed that Boy common stock returned a nifty 21.6 percent rate of return last year and that the dividend amount was $.25 a share which equated to a dividend yield of 1.01 percent.
The rate of price appreciation for the year will be the difference between the rate of return last year and the dividend yield. This will be:
= 21.6% - 1.01%
= 0.216 - 0.0101
= 0.2059
= 20.59%
