Today, you sold 800 shares of DeSoto, Inc., for $55.50 a share. You bought the shares one year ago at a price of $60.02 a share. Over the year, you received a total of $500 in dividends. What is your capital gains yield on this investment?

Question

Quizplus · Accepted Answer

The capital gains yield can be calculated by finding the percentage change in the price of the investment. The purchase price was $60.02, and the selling price was $55.50. The capital gains yield = [(55.50 - 60.02) / 60.02] * 100 = [(-4.52) / 60.02] * 100 = -7.53%. The dividends received do not affect the calculation of capital gains yield, which is solely based on the change in the price of the investment.

Today, You Sold 800 Shares of DeSoto, Inc