David purchased a stock for $78.25 a share and sold it nine months later for $84.60 a share. He also received a dividend of $1.75 per share. What was his capital gains yield? a. 5.42% b. 8.12% c. 10.35% d. 6.84% e. 3.69%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
Problem 2PROB
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Financial accounting

David purchased a stock for $78.25 a share and sold it nine
months later for $84.60 a share. He also received a dividend
of $1.75 per share. What was his capital gains yield?
a. 5.42%
b. 8.12%
c. 10.35%
d. 6.84%
e. 3.69%
Transcribed Image Text:David purchased a stock for $78.25 a share and sold it nine months later for $84.60 a share. He also received a dividend of $1.75 per share. What was his capital gains yield? a. 5.42% b. 8.12% c. 10.35% d. 6.84% e. 3.69%
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