Your investment over one year yielded a capital gains yield of 5% and no dividend yield.If the sale price was $119 per share,what was the cost of the investment?

Question

Quizplus · Accepted Answer

Let the cost of investment be x.

Capital gains yield = (sale price - cost of investment) / cost of investment

5% = (119 - x) / x

0.05x = 119 - x

1.05x = 119

x = 119 / 1.05

x ≈ $113.33

Therefore, the cost of the investment was $113.33, option C is the correct answer.

Your Investment Over One Year Yielded a Capital Gains Yield