Question

Suppose a stock had an initial price of $71 per share, paid a dividend of $per share during the year, and had an ending share price of $85. Compute the percentage total return

Answer 1

The percentage will be "21.48%".

Step-by-step explanation:

The given values are:

Initial price,

= $71per share

Paid dividend,

= $1.25 per share

Ending share price,

= $85

Now,

The total return will be:

=
`((Ending \ price - Initial \ price + Received \ dividend))/(Initial \ price)`

On substituting the values, we get

=
`((85 - 71 + 1.25))/(71)`

=
`(15.25)/(71)`

=
`21.48 \ percent`