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BaLLatris [955]
3 years ago
15

One year ago, Debra purchased 5,400 shares of KNF stock for $218,056. Today, she sold those shares for $19.49 a share. What is t

he capital gains yield on this investment if the dividend yield is 1.7 percent?
A.-28.01 percent
B.-48.28 percent
C.3.07 percent
D.-51.73 percent
E.4.53 percent
Business
1 answer:
kramer3 years ago
7 0

Answer:

Capital gain yield will be -51.73%

So option (d) will be the correct answer

Explanation:

We have given that Debra purchased 4500 shares of KNF stock for $218056

So price of one share =\frac{218056}{5400}=$48.380

So the beginning price = $40.380

She sold the share at price of 19.49 per share

So ending price = $19.49

We have to find the capital gain yield

We know that capital gain yield is given by

Capital gain yield =\frac{end\ price-beginning\ price}{begninning \ price}=\frac{19.49-40.380}{40.390}=-51.73 %

So option (d) will be correct option  

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<h3>What is treasury stock?</h3>


Treasury stock, commonly referred to as treasury shares or reacquired stock, denotes previously outstanding stock that the issuing business has acquired from stockholders. The overall number of outstanding shares on the open market declines as a result.

Learn more about Cash dividends here:
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