An investor earns dividends of $450 during the course of a year.At the end of the year, the stock is worth $10,700. If the capital-gains yield on the stock over the year is calculated at 8 percent the approximate worth of the stock at the beginning of the year was

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The capital-gains yield is calculated based on the increase in the stock's price over the year. An 8% increase means the stock was worth $10,700 / 1.08 = $9,907 at the beginning of the year.

An Investor Earns Dividends of $450 During the Course of a Year.At