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13 December, 11:36

One year ago, Stacey purchased 100 shares of KNF stock for $3,245. Today, she sold those shares for $35.00 per share. What is the capital gains yield on this investment if the dividend yield is 1.4 percent?

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  1. 13 December, 15:00
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    7.86%

    Explanation:

    The computation of the capital gain yield on the investment is shown below:

    As we know that

    Capital gains yield is

    = (Selling price per share * number of shares purchased) : (Stock value) - 1

    = $3,500 : $3,245 - 1

    = 0.07858

    = 7.86%

    We simply applied the above formula so that the capital gain yield could come and the same is to be considered
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