One year ago, Hitech Solutions purchased a stock for $48.75 per share. The company received a dividend of $2.75 per share last month, and the stock today is worth $52.60 per share. What is the capital gains yield on this investment? a) 5.50 percent b) 6.63 percent c) 7.93 percent d) 8.57 percent
One year ago, Hitech Solutions purchased a stock for $48.75 per share. The company received a dividend of $2.75 per share last month, and the stock today is worth $52.60 per share. What is the capital gains yield on this investment? a) 5.50 percent b) 6.63 percent c) 7.93 percent d) 8.57 percent
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 5P
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Transcribed Image Text:One year ago, Hitech Solutions purchased a stock for $48.75 per share.
The company received a dividend of $2.75 per share last month, and the
stock today is worth $52.60 per share. What is the capital gains yield on
this investment?
a) 5.50 percent
b) 6.63 percent
c) 7.93 percent
d) 8.57 percent
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