You purchased a share of stock for $58.00. At the end of a quarter, the stock paid a dividend of $0.75, and you sold it for $63.00 right after receiving the dividend.
-Refer to the information above. What was your capital gains yield? Round your answer to the nearest tenth of a percent.
A)9.9%
B)8.6%
C)9.3%
D)9.2%

Question

Quizplus · Accepted Answer

Capital gains yield = (sale price - purchase price - dividends) / purchase price
= ($63.00 - $58.00 - $0.75) / $58.00
= $4.25 / 58.00 
= 0.0733 or 7.33%
Round to the nearest tenth of a percent gives 8.6%. Therefore, the capital gains yield is 8.6%. The answer is B.

You Purchased a Share of Stock for $58