You purchased GARP stock one year ago at a price of $63.90 per share. Today, you sold your stock and earned a total return of 18.27 percent. The stock paid dividends of $2.40 per share over the year. What was the capital gains yield on your investment? Question 36Answer a. 16.13% b. 17.05% c. 13.19% d. 18.27% e. 14.51%
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The total return on an investment is the sum of the capital gains yield and the dividend yield. It can be expressed as: \[ \text{Total Return} = \text{Capital Gains Yield} + \text{Dividend Yield} \] Show more…
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