Today, you sold 100 shares of Natural, Inc. stock. Your total return on these shares is 10.5%. You purchased the shares one year ago at a price of $25.75 a share. You have received a total of $110 in
Dividends over the course of the year. What is your capital gains yield on this investment?

Question

Quizplus · Accepted Answer

The capital gains yield is calculated as the difference between the sale price and the purchase price, divided by the purchase price. In this case, the sale price is $28.40 (100 shares x $28.40 = $2,840), and the purchase price is $2,575 (100 shares x $25.75 = $2,575). Therefore, the capital gains yield is ($2,840 - $2,575) / $2,575 = 0.105, or 10.5%.

Today, You Sold 100 Shares of Natural, Inc