Last year, you purchased 400 shares of Analog stock for $12.92 a share. You have received a total of $136 in dividends and $4,301 in proceeds from selling the shares. What is your capital gains yield on this stock?
A) 9.09 percent
B) 6.73 percent
C) −16.78 percent
D) −14.14 percent
E) −11.02 percent

Question

Quizplus · Accepted Answer

Capital gains yield is calculated as (Selling Price - Purchase Price) / Purchase Price. The purchase price was 400 shares * $12.92 = $5,168. The selling price was $4,301. The capital gain is $4,301 - $5,168 = -$867. The capital gains yield is -$867 / $5,168 = -16.78%.

Last Year, You Purchased 400 Shares of Analog Stock for $12.92