ast year, you purchased 700 shares of Forever, Inc., stock at a price of $49.62 per share. You received $1,050 in dividends and a total of $41,293 when you sold the stock. What was the capital gains yield on this stock?

ast year, you purchased 700 shares of Forever, Inc., stock at a price of $49.62 per share. You received $1,050 in dividends and a total of $41,293 when you sold the stock. What was the capital gains yield on this stock?

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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Question

Last year, you purchased 700 shares of Forever, Inc., stock at a price of $49.62 per share. You received $1,050 in dividends and a total of $41,293 when you sold the stock. What was the capital gains yield on this stock?

Multiple Choice

16.19%
18.88%
17.94%
3.02%
17.43%

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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