Suppose that you purchased 300 shares of a stock at $36 per share, ignoring all commissions. Assume the stock paid a dividend of $2.15 per share for the year. The stock price rose to $41.05 per share and was then sold at that price. What was the capital gains yield? A. 10 percent B. 6 percent C. 14 percent D. 12.3 percent
Suppose that you purchased 300 shares of a stock at $36 per share, ignoring all commissions. Assume the stock paid a dividend of $2.15 per share for the year. The stock price rose to $41.05 per share and was then sold at that price. What was the capital gains yield? A. 10 percent B. 6 percent C. 14 percent D. 12.3 percent
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 17P
Related questions
Question
Financial accounting

Transcribed Image Text:Suppose that you purchased 300 shares of a stock at $36 per
share, ignoring all commissions. Assume the stock paid a dividend
of $2.15 per share for the year. The stock price rose to $41.05 per
share and was then sold at that price.
What was the capital gains yield?
A. 10 percent
B. 6 percent
C. 14 percent
D. 12.3 percent
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT