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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) 7.89 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) 7.89 percent d) 8.57 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 5P
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Financial Accounting

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) 7.89 percent d) 8.57 percent
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) 7.89 percent d) 8.57 percent
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