Vidyalelo
Management · Q620

International Finance and Treasury

Graduate and Post Graduate · Management · question 620

Q620

Return to stockholders is 15% and periodic dividend payments are 11.5% then gains on capital are

A.
2.65%
B.
3.50%
Answer
C.
1.30%
D.
4.30%

Answer: Option B

Solution

Answer: Option B
Solution:
Gains on capital = Return to stockholders - Periodic dividend payments
= 15% - 11.5% = 3.50%.