Suppose a stock had an initial price of $88 per share, paid a dividend of $8 during the year and had an ending price of $98. What was the capital gain yield?
A) 20.45%
B) 10.20%
C) 11.36%
D) 9.09%

Question

Quizplus · Accepted Answer

Capital gain yield is calculated as (ending price - initial price)/initial price. Thus, the capital gain yield for this stock is (98-88)/88 = 0.1136 or 11.36%.

Suppose a Stock Had an Initial Price of $88 Per