One year ago, you purchased 600 shares of a stock. This morning you sold those shares and realized a total return of 3.1 percent. Given this information, you know for sure the:

A. stock price increased by 3.1 percent over the last year.

B. stock increased in value over the past year.

C. stock paid a dividend.

D. dividend yield is greater than zero.

E. sum of the dividend yield and the capital gains yield is 3.1 percent.

Question

Cristopher Meyer

Business

3 August, 04:51

One year ago, you purchased 600 shares of a stock. This morning you sold those shares and realized a total return of 3.1 percent. Given this information, you know for sure the:

A. stock price increased by 3.1 percent over the last year.

B. stock increased in value over the past year.

C. stock paid a dividend.

D. dividend yield is greater than zero.

E. sum of the dividend yield and the capital gains yield is 3.1 percent.

+4

Answers (1)

Know the Answer?

Eli Grant · Answer 1

E. sum of the dividend yield and the capital gains yield is 3.1 percent.

Explanation:

According to the scenario, computation of the given data are as follow:-

As we know that,

Total Return Price = (Dividend : Beginning year price) + Ending year price - Beginning year price

= Dividend Yield + Capital Gains Yield

So according to the analysis, option (E) sum of the dividends yield and the capital gains is 3.1 percent is correct.