The capital gains yield of a stock can be calculated by dividing the change in price of the stock after the first period by the original price. Investopedia explains that the formula for this is (P1 - P0) / P0, where P1 equals the original price paid and P0 equals the price after the first period.Know More
Capital gains yield is the appreciation of the stock over a certain period (which may be annual, monthly or quarterly), whereas dividends are determined by the company and paid out to shareholders during a certain period. For example, if Company X's stocks are purchased at $10 per share and they increase to $100 per share during the quarter, the capital gains yield formula would be 100 - 10 / 10 = 9, or 900 percent.
When the capital gains yield occurs over multiple periods, each period cannot be summed to generate a total capital gains yield. Instead, the investor must use the holding period return formula. This formula is HPR = [(1 + r1) * (1 + r2) * ... (1 + rx)] - 1, where r is the return per period and rx is the number of periods.
When investing in a stock, it is important to calculate the holding period return rate rather than simply looking at the capital gains yield or the dividend return rate, because it is possible that stocks with lower dividend returns held over shorter periods of time may provide a greater percentage of return on the investment.Learn more about Financial Calculations
Calculate a stock's dividend yield by dividing the annual dividend per share by the price per share for that stock, explains About.com. If company XYZ pays a yearly dividend of $2 per share while the stock trades at $100 per share, the dividend yield is 2 percent, or 2 divided by 100.Full Answer >
Adjusted gross income, or AGI, is calculated by subtracting allowable deductions from gross income, as specified by the U.S. Internal Revenue Code. For taxpayers meeting annual federal income tax obligations, AGI is calculated on the first few lines of a federal income tax return form, such as Form 1040.Full Answer >
Prorated amounts are calculated by dividing the cost of a service by the number of days in the service period, according to Lucas Hall from Landlordology. The resulting number is then multiplied by the number of days the service is used to find the prorated amount.Full Answer >
Required minimum distributions, or RMDs, from an IRA are calculated by dividing the year-end value of the IRA by the distribution period determined by the IRS, according to BankRate. RMDs must start being withdrawn no later than April 1 of the year following the year the account holder turns 70 1/2.Full Answer >