Question

In: Finance

If the price for Apple stock is $44 today, and the dividend next period is $3.50...

If the price for Apple stock is $44 today, and the dividend next period is $3.50 and the price next period is expected to be $36, what is the capital gains yield?

A) 18.182%

B) - 18.182%

C) 7.954%

D) 22.22%

E) - 10.228%

Solutions

Expert Solution

Ans B) - 18.182%

Po = Purchase Price
P1 = Sale Price
CAPITAL GAIN YIELD = (P1 - P0)/ P0 * 100
(36 - 44) / 44 * 100
-18.182%

jeff jeffy answered 3 years ago
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