Aliyah purchased Verizon Communications stock in April 2015 for $48.90 per share. She sold the stock one-year later for $54.01 per share. Calculate her capital gains yield.

Question

Damian Clay

Business

15 December, 21:57

Aliyah purchased Verizon Communications stock in April 2015 for $48.90 per share. She sold the stock one-year later for $54.01 per share. Calculate her capital gains yield.

+5

Answers (1)

Know the Answer?

Josephine Strong · Answer 1

Capital Gains Yield = 10.45%

Explanation:

The capitals gain yield represents the percentage appreciation or increase in the value of an investment. It is simply calculated by calculating the increase in the value of an investment or stock/bond and divide it by its initial cost.

The formula for CG Yield is,

CG Yield = (P1 - P0) / P0

Where,

P1 is current price

P0 is initial price paid

Thus CG Yield = (54.01 - 48.9) / 48.9 = 0.10449 pr 10.449%