$60 one year ago. The stock is now worth $70. During the year, the stock paid a dividend of $2.25. What is the total return to G

Question

Zolol [24]

2 years ago

5

$60 one year ago. The stock is now worth $70. During the year, the stock paid a dividend of $2.25. What is the total return to G

eorge from owning the stock? (Round your answer to the nearest whole percent.)?

Business

1 answer:

Nitella [24] · Answer 1 · 2023-02-23T13:05:58+03:00

$60 one year ago. The stock is now worth $70. During the year, the stock paid a dividend of $2.25. The total return to George from owning the stock would be 20% (after rounding off the answer to the nearest whole percent).

Total return on share is the summation of dividend and price appreciation.
Since, the dividend = $2.25
Then, to ascertain price appreciation we need to subtract the dividend from the total return on the share.
Price appreciation = $70 - $60 = $10
Total return can be calculated hence.
Total return = $10 + $2.25 = $12.25
Therefore, the total return for George was $12.25.
To round off the answer to the nearest whole percentage:
Total return percent = $12.25/$60 = 20% approximately

Therefore, the total return to George from owning the stock would be 20%.

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