Today, you sold 200 shares of SLG, Inc. stock. Your total return on these shares is 12.5%. You purchased the shares one year ago at a price of $28.50 a share. You have received a total of $280
In dividends over the course of the year. What is your capital gains yield on this investment?

Question

Quizplus · Accepted Answer

To find the capital gains yield, first calculate the total return in dollar terms: 200 shares * $28.50 = $5,700 initial investment. A 12.5% total return on $5,700 is $712.50. Subtract the dividends received ($280) from the total return to find the capital gain: $712.50 - $280 = $432.50. The capital gains yield is then $432.50 / $5,700 = 0.0759 or 7.59%.

Today, You Sold 200 Shares of SLG, Inc