Q852
In expected rate of return for constant growth, capital gains is divided by beginning price to calculate
A.
yield of loan return
B.
yield of mortgage return
C.
yield of capital gains
AnswerD.
yield of fixed cost
Answer: Option C
Solution
Answer: Option C
Solution:
In expected rate of return for constant growth, capital gains is divided by beginning price to calculate yield of capital gains. A capital gains yield is the rise in the price of a security, such as common stock. For common stock holdings, the CGY is the rise in the stock price divided by the original price of the security.