17 Molly purchases a share of Glower stock for 525 and one y

17. Molly purchases a share of Glower stock for $525 and one year later she needs to sell that stock. At the time she sells the stock the stock price is $700. What is the capital gains yield Molly realized?

Solution

Answer is 33.33%

Capital Gain Yield =(Sale Price-Purchase Price)/Purchase Price

=(700-525)/525=33.33%