Suppose a stock had an initial price of $76 per share, paid a dividend of $1.42 per share during the year, and had an ending share price of $81. What was the capital gains yield?
A) 6.17 percent
B) 6.69 percent
C) 7.05 percent
D) 6.58 percent
E) 5.44 percent

Question

Quizplus · Accepted Answer

Capital gains yield = (ending share price - initial share price) / initial share price

= ($81 - $76) / $76

= $5 / $76

= 0.0658 or 6.58% (rounded to two decimal places)

Therefore, the capital gains yield is 6.58%, and the best choice is D.

Suppose a Stock Had an Initial Price of $76 Per