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26 June, 17:18

One year ago, you purchased a stock at a price of $32 a share. Today, you sold the stock and realized a total return of 14.62 percent. Your capital gain was $3.48 a share. What was your dividend yield on this stock?

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  1. 26 June, 17:32
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    3.75%

    Explanation:

    Purchase price of the stock = $32

    Total return on the stock:

    = Purchase price of the stock * Total return

    = 32 * 14.62%

    = $4.6784

    Dividend gain on the stock:

    = Purchase price of the stock + Total return on the stock - capital gain - Purchase price

    = $32 + $4.6784 - $3.48 - $32

    = $1.1984

    Dividend yield:

    = Dividend gain on the stock : Purchase price of the stock

    = $1.1984 : 32

    = 3.75%
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