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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

Respuesta :

Answer:

The percentage will be "21.48%".

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:

= [tex]\frac{(Ending \ price - Initial \ price + Received \ dividend)}{Initial \ price}[/tex]

On substituting the values, we get

= [tex]\frac{(85 - 71 + 1.25)}{71}[/tex]

= [tex]\frac{15.25}{71}[/tex]

= [tex]21.48 \ percent[/tex]

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