Andrew purchased a stock for $175 and sold it for $250. If he earned a dividend income of $30, the stock's yield is:

Name: Andrew purchased a stock for $175 and sold it for $250. If he earned a dividend income of $30, the stock's yield is:
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Question

Quizplus · Accepted Answer

The yield is calculated as the total income (capital gain + dividend) divided by the purchase price. Capital gain is $250 - $175 = $75. Total income is $75 + $30 = $105. Yield = ($105 / $175) * 100% = 60%.

Andrew Purchased a Stock for $175 and Sold It for $250