Question

Wilma just sold all the shares of International Inns stock that she owned for $156 per share. She purchased the stock one year ago for $150 per share. If Wilma did not receive any dividend payments during the year, what yield did she earn on her investment?

Answer 1

Yield on investment = 4%

Step-by-step explanation:

As for the information provided,

The time period to hold such stock is 1 year.

Total return = $156 that is the sale price as the dividend amount = $0

Invested amount = $150 = purchase price of stock.

Net return = Total return - Investment amount = $156 - $150 = $6

Return rate = $6/$150
`*` 100

That is (net return)/(Investment)
`*` 100

= 4%