One year ago,you purchased a stock at a price of $32 a share.Today,you sold the stock and realized a total return of 14.62 percent.Your capital gain was $3.48 a share.What was your dividend yield on this stock?
A)2.25 percent
B)3.75 percent
C)3.35 percent
D)2.85 percent
E)4.35 percent

Question

Quizplus · Accepted Answer

The total return of 14.62 percent on the stock includes both the capital gain and the dividend yield. The capital gain of $3.48 per share on a purchase price of $32 per share translates to a capital gain percentage of ($3.48 / $32) * 100% = 10.875%. To find the dividend yield, subtract the capital gain percentage from the total return percentage: 14.62% - 10.875% = 3.745%, which rounds to 3.75 percent, matching option B.

One Year Ago,you Purchased a Stock at a Price of $32