Answer:
The annual rate of return on the Granny Smith stock purchased is 39.88%
Step-by-step explanation:
What is the annual rate of return?
The annual rate of return is the total return earned when a stock is purchased. It is the sum of the dividend yield and the price appreciation of the stock.
Dividend yield = dividend per share / purchase price
Dividend per share = 232 / 100 = 2.32
Dividend yield = 2.32 / 157.21 = 0.0148 = 1.48%
Price appreciation = (217.58 / 157.21) - 1 = 38.40%
The annual rate of return = 38.40 + 1..48 = 39.88