Question

One year ago, you purchased a stock at a price of $58.61 per share. Today, you sold your stock at a loss of 18.31 percent. Your capital loss was $11.85 per share. What was the dividend yield on this stock?

Multiple Choice

• 18.11%

• 1.97%

• 1.91%

• 2.12%

• 16.60%

Answer 1

The stock price when you purchased the stock was $58.61. It was sold for a loss of 18.31%.

New Stock Price = Old Stock Price - Loss Percentage

= 58.61 - 18.31% of 58.61

= 58.61 - 10.7314

= 47.8786

Capital Loss Percentage = Capital Loss / Old Stock Price

= 11.85 / 58.61

= 20.2183%

Capital Loss Percentage = Stock Loss percentage - Dividend Yield (As Dividend is considered as gain, so it reduces loss)

20.2183 = 18.31% - Dividend yield

Dividend Yield = 1.91%(Approx)

So the correct option is 1.91%