Question

You purchased a share of Blyton Industries common stock 1 year ago for $37.50. During the year you received dividends totaling $0.60 and today the stock can be sold for $39.28. What total return did you earn on this stock over the past year? (Round your percentage answer to one decimal place.)

Answer 1

return in dollars: 2.38

rate of retrun: 6.35%

Step-by-step explanation:

there are two returns:

one is the dividends cash flow of $ 0.6

and the other is the capital gain:

current market price - cost: 39.28 - 37.5 = $ 1.78

total return in dollars: $ 2.38

`(return)/(cost) = $Rate of Return`

2.38/37.50 = 0,06346667 = 6.35%