Exhibit 19-1.Joanna Robertson bought a share of XYZ Corp.at $200 last year.She was paid a dividend of $30 during the same year.However,the same share is trading at $280 this year. Refer to Exhibit 19-1.Calculate Joanna's capital gains percent yield if she sells the shares at $280.
A)80%
B)15%
C)40%
D)28.57%

Question

Quizplus · Accepted Answer

The capital gains yield is calculated as the increase in the price of the share divided by the original price. The increase is $280 - $200 = $80. The capital gains yield is ($80 / $200) * 100% = 40%.