Question

One year ago, you bought a stock for $29.15 a share. You received a dividend of $1.04 per share last month and sold the stock today for $28.80 a share. What is the capital gains yield on this investment

Answer 1

Capital gain will be equal to -1.20 %

Step-by-step explanation:

We have given that you bought a stock for $29.15

And after one year sold the stock for $28.80

We have to find the capital gain

Capital gain is given by

`capital\ gain=(selling\ price-purchased\ price)/(purchased\ price)=(28.80-29.15)/(29.15)=-0.0120` = -1.20 %

So capital gain will be equal to -1.20 %