McCoy Paid a One-Time Special Dividend of $3

question 107

Multiple Choice

McCoy paid a one-time special dividend of $3.20 on October 18, 2010. Suppose you bought McCoy stock for $47.00 on July 18, 2010, and sold it immediately after the dividend was paid for $62.93. What was your capital gain yield from holding McCoy?

• A) 4.07%
• B) 6.11%
• C) 33.89%
• D) 40.70%

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Definitions:

Economic Advantage

A benefit that gives an individual, business, or country a superior position in economic activities.

Motorcycle

A two-wheeled vehicle powered by an engine, designed for individual or dual riders.

Annuity Contract

A financial product offered by insurance companies that provides a series of payments at regular intervals for a specified period or for life.

Present Value

Today's value of a future monetary amount or a string of cash flows, considering a specified rate of return.