The ordinary equity of Grady had an 11.25% rate of return last year.The dividend amount was €.70 a share which equated to a dividend yield of 1.5%.What was the rate of price appreciation on the equity?
A)1.50%
B)8.00%
C)9.75%
D)11.25%
E)12.75%

Question

Quizplus · Accepted Answer

The rate of price appreciation is the difference between the rate of return and the dividend yield: 11.25% - 1.5% = 9.75%.

The Ordinary Equity of Grady Had an 11