Asked by Audrey Cummings on Jun 02, 2024
Verified
Vitaly's shares of Dominion Petroleum have dropped in value from $36.75 to $32.25 during the past year. The shares paid a $0.50 per share dividend 6 months ago. Calculate Vitaly's income yield, capital gain yield, and rate of total return for the year.
Capital Gain Yield
The rise in the price of a security, like a stock or bond, leading to a profit if sold; expressed as a percentage increase over the investment's cost.
Income Yield
The return on an investment in terms of the income generated, expressed as a percentage of the investment's cost.
Total Return
The overall gain or loss on an investment over a particular period, including dividends, interest, and capital gains.
- Comprehend the methodology for determining income yield from an investment.
- Comprehend the method for calculating capital gain yield on an investment.
- Learn to evaluate the total return rate of an investment.
Verified Answer
AA
Learning Objectives
- Comprehend the methodology for determining income yield from an investment.
- Comprehend the method for calculating capital gain yield on an investment.
- Learn to evaluate the total return rate of an investment.