Today,you sold 300 shares of SLG stock and realized a total return of 12.5 percent.You purchased the shares one year ago at a price of $27.43 a share.You have received a total of $192 in dividends.What is your capital gains yield on this investment?
A)14.80 percent
B)9.39 percent
C)6.67 percent
D)10.17 percent
E)11.67 percent

Question

Quizplus · Accepted Answer

First, we need to calculate the total selling price of the 300 shares:
Total Selling Price = 300 shares * Current Price
We can use the total return percentage to calculate the current price:
12.5% = (Total Selling Price - Total Cost - Total Dividends) / Total Cost
12.5% = (Total Selling Price - (300 shares * $27.43) - $192) / (300 shares * $27.43)
Solving for Total Selling Price, we get:
Total Selling Price = $9,246.44

Now, we can calculate the capital gains yield:
Capital Gains = (Total Selling Price - Total Cost) / Total Cost
Total Cost = (300 shares * $27.43) + $192 = $8,289
Capital Gains = ($9,246.44 - $8,289) / $8,289 = 11.56%
Therefore, the closest answer is D) 10.17 percent.

Today,you Sold 300 Shares of SLG Stock and Realized a Total