One year ago, you purchased 400 shares of stock at a cost of $5,000. The stock paid an annual dividend of $11.30 per share. Today, you sold those shares for $23.50 each. What is the capital gains yield on this investment?
A)8.80%
B)9.96%
C)11.50%
D)12.7%
E)14.75%

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 capital gains yield is ($23.50 - $5,000) / $5,000 = 8.80%.

One Year Ago, You Purchased 400 Shares of Stock at a Cost