Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $.28 per share during the following year, and the share price at the end of the year was $41 a. What is the capital gains yield? b. What is the dividend yield? c. What is the total rate of return on the investment?
Added by Christine H.
Step 1
The initial price was $37 per share, and the final price was $41 per share. The capital gains yield is: Capital Gains Yield = (Final Price - Initial Price) / Initial Price Capital Gains Yield = ($41 - $37) / $37 b. Show more…
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