Answer:
Dividend yield = 16.3636%
Explanation:
As for the information provided:
Dividend yield = $4.50
And that amount is earned on the investment amount of $27.50.
The current price as stated in the formula is on which you receive the dividend.
Dividend yield = [tex]\frac{4.50}{27.50} \times 100[/tex] = 16.3636%
As the selling price is the price at which the investment in shares is sold.
That the difference in between the selling price and the price at which it is purchased is capital gain.
