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

A. 2.65%

B. 3.50%

C. 1.30%

D. 4.30%

Answer: Option B

Solution(By Examveda Team)

Gains on capital = Return to stockholders - Periodic dividend payments
= 15% - 11.5% = 3.50%.