You Purchase 100 Shares of Stock at a Price of $45

Multiple Choice

You purchase 100 shares of stock at a price of $45 per share. One year later, the shares are selling for $47 per share. In addition, a dividend of $4 per share is paid at the end of each year.

What is the capital gains yield for the investment?

A) 4.4%
B) 5.5%
C) 8.5%
D) 8.9%
E) 13.3%