Connie bought 400 shares of ABC Company for $9,288 one year ago.ABC paid a quarterly dividend of $0.40 per share throughout the year,and is currently trading at $24.85 per share.What are the income yield,capital gain yield,and total return for Connie's investment?
A) Income yield = 6.44%; capital gain yield = 6.56%; total return = 13.00%
B) Income yield = 6.56%; capital gain yield = 6.44%; total return = 13.00%
C) Income yield = 6.89%; capital gain yield = 7.02%; total return = 13.91%
D) Income yield = 7.02%; capital gain yield = 6.89%; total return = 13.91%

Question

Quizplus · Accepted Answer

Income yield,IY = $0.4*4/$23.22 = 6.89%,Capital gain yield,CGY = ($24.85-$23.22)/$23.22 = 7.02% Total return,TR = 6.89% + 7.02% = 13.91%

Connie Bought 400 Shares of ABC Company for $9,288 One