Hi In part iii) of ques 6,the dividend yield over the day is calculated as( 170. 85-168.82)/5857.52. Why have the divided by the capital index value at day 1? Shouldn't it be divided by the capital index value at time 2 i:e 5774.20?
Hi Nimisha Personally I can see rationales for using either the close of Day 1 or close of Day 2 index figures as the denominator. You are right that dividend yield is often calculated as dividends paid to date divided by the current market value, implying that using the close of day 2 figure would be fine
