Stacy purchased a stock last year and sold it today for $3 a share more than her

Question

Stacy purchased a stock last year and sold it today for $3 a share more than her purchase price. She received a total of $0.75 in dividends. Which one of the following statements is correct in relation to this investment?
The dividend yield is expressed as a percentage of the selling price.
The capital gain would have been less had Stacy not received the dividends.
The total dollar return per share is $3.
The capital gains yield is positive.
The dividend yield is greater than the capital gains yield.

Explanation / Answer

E. The dividend yield is greater than the capital gains yield.

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