Sandy paid $47.38 for one share of EMH Company one year ago.The stock paid four quarterly dividends of $1.00 each during the year,and is selling for $49.50 now.What are the income yield and capital gain yield for EMH over the past year?
A) Income yield = 4.28%; capital gain yield = 8.08%
B) Income yield = 8.08%; capital gain yield = 4.28%
C) Income yield = 4.47%; capital gain yield = 8.44%
D) Income yield = 8.44%; capital gain yield = 4.47%

Question

Quizplus · Accepted Answer

Income yield,Y = $1*4/$47.38 = 8.44%,And capital gain yield,CGY = ($49.5-$47.38)/$47.38 = 4.47%

Sandy Paid $47