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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › December 2008
December 2008 (c) 2nd paragraph
I did not understand “If the dividend yield remains 6% per year, the dividend per share for 2008 will 15.6p. Adding this to the capital gain of 20 p gives a total shareholder return of 35.6p or 14% ”
Can you please explain this briefly??
The total shareholder return over the year, is the dividend during the year plus the increase in market value, expressed as a % of the market value at the start of the year.
How did he get 15.6p
6% x $2.60