Question

Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $66. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answer 1

Answer: 20.71%

Step-by-step explanation:

The percentage total return will be calculated as follows:

= (Ending price + Dividend - Initial price) / Initial price

= ($66 + $1.60 - $56) / $56

= $11.60 / $56

= 0.2071

= 20.71%

Therefore, the percentage total return is 20.71%