Question

Suppose a stock has an initial price of $71 per share, paid a dividend of $1.75 per share during the year, and had an ending share price of $88. Compute the percentage total return.

Answer 1

Total return = 26.4%

Step-by-step explanation:

Given:

Initial price = $71 per share

Dividend = $1.75 per share

Ending share price = $88

Compute:

Percentage total return

Computation:

Total return = [Ending share price + Dividend - Initial price)/Initial price

Total return = (88 + 1.75 - 71) / 71

Total return = 26.4%