Question

MedTech Corp. stock was $50.95 per share at the end of last year. Since then, it paid a $0.45 per share dividend. The stock price is currently $62.50. If you owned 500 shares of MedTech, what was your percent return

Answer 1

Answer: 23.55%

Step-by-step explanation:

Based on the information given in the question, first, we've to calculate the dollar return which will be:

= (Ending value - Beginning value) + Income

= ($62.50 × 500) - ($50.95 × 500 + $0.45 × 500)

= $6000

The percent return will then be:

= $6000 / (50.95 × 500)

= 23.55%