A stock has paid dividends of $1.70, $1.85, $2.00, $2.20, and $2.50 over the past five years, respectively. What is the average capital gains yield?
A) 8.86 percent
B) 3.24 percent
C) 9.45 percent
D) 5.34 percent
G = [($1.85 - 1.70) / $1.70 + ($2.00 - 1.85) / $1.85 + ($2.20 - 2.00) / $2.00 + ($2.50 - 2.20) / $2.20] / 4 = .1014, or 10.14 percent
E) 10.14 percent
Correct Answer:
Verified
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