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
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d49775d-c51f-4259-829b-15917c4b3a7b%2F6e5cfb87-b772-4889-ad6a-53d22ad0f8e7%2F9kdqdkh_processed.jpeg&w=3840&q=75)
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
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