Alex purchased a stock for $38.90 a share and sold it one year later for $40.75 a share. He also received a dividend of $1.10 per share. What was his capital gains yield? a. 4.25% b. 3.95% c. 3.12% d. 4.45% e. 5.25%
Alex purchased a stock for $38.90 a share and sold it one year later for $40.75 a share. He also received a dividend of $1.10 per share. What was his capital gains yield? a. 4.25% b. 3.95% c. 3.12% d. 4.45% e. 5.25%
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 2PROB
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I am trying to find the accurate solution to this financial accounting problem with appropriate explanations.
Transcribed Image Text:Alex purchased a stock for $38.90 a share and sold it one year later for
$40.75 a share. He also received a dividend of $1.10 per share. What was his
capital gains yield?
a. 4.25%
b. 3.95%
c. 3.12%
d. 4.45%
e. 5.25%
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