The capital gain yield of an equity security is 9.27 percent.The security paid a quarterly dividend of $0.55 per share during the year.What is the current price of the security if the total return is 13.76 percent?
A) $12.25
B) $13.38
C) $49.00
D) $53.54

Question

Quizplus · Accepted Answer

Compute income yield,11ea8229_348e_6b22_bbd8_232cdd6ef028_TB1726_11 Last year's price,P₀ = $0.55*4/4.49% = $49 and Current price,P₁ = $49*(1+9.27%)= $53.54

The Capital Gain Yield of an Equity Security Is 9