Question

A stock that sold for ​$ per share at the beginning of the year was selling for ​$ at the end of the year. If the stock paid a dividend of ​$ per​ share, what is the simple interest rate on the investment in this​ stock? Consider the interest to be the increase in value plus the dividend.

Answer 1

Answer:

137.77%

Explanation:

obviously the numbers are missing, so I looked for a similar question:

"A stock that sold for ​$26 per share at the beginning of the year was selling for ​$52 at the end of the year. If the stock paid a dividend of ​$9.82 per​ share, what is the simple interest rate on the investment in this​ stock? Consider the interest to be the increase in value plus the dividend."

• total interest received (your gain) = (year end market value - purchase price) + dividends received = ($52 - $26) + $9.82 = $35.82
• initial investment (purchase price) = $26

simple interest rate of return on investment = total interest received / initial investment = $35.82 / $26 = 1.3777 or 137.77%