If a stock's price is $20 at the beginning of a year and $17 at the end of the year, and it pays a dividend of $2 during the year, then the stock's capital-gains yield is _____percent.

Question

Quizplus · Accepted Answer

The capital-gains yield is calculated as the change in stock price divided by the initial stock price. Here, the change is $17 - $20 = -$3. The capital-gains yield is (-$3 / $20) * 100% = -15%.

If a Stock's Price Is $20 at the Beginning of a Year