Question

a stock is selling today for 80 per share. At the end of the year, it pays a dividend of 4 per share and sells for 88. What is the total rate of return on the stock

Answer 1

15%

Step-by-step explanation:

Total rate of return on the stock is:

= [(Stock closing price + Dividend paid) - Stock opening price] / Stock opening price

= (88+4-80) / 80 = 15%