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Sagot :
The correct answer is A. Dividend yield. A capital gains yield is the term used to describe how much a security's price, such as common stock, increases.
Divided with the aid of the rate according to proportion, the dividend yield, also known as dividend-rate ratio, is the dividend according to proportion. In addition, it is a company's whole yearly dividend payments divided by its market value, assuming the number of shares is constant.
Capital gain plus dividend yield equals total return.
Dividend yield is calculated as dividend / stock price.
Dividend yield would remain constant if dividend payments were constant.
For instance, if the dividend is 4 and the purchase price was 40
return on dividends = 4/40 = 0.1
The stock's price move represents a capital gain.
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