Question

You purchased xyz common shares for $45 per share one year ago. one year later aftering receiving $4 dividend per share, you sold your stock at $48 per share. what is your total return for the one year period?
a. 14.58%
b. 8.89%
c. 15.56%
d. 6.67%

Answer 1

The return for the investment is C, or 15.56%. You add the dividend and the capital gain, $4+$3=$7, and then divide by the initial investment price, or $45. 7/45=.1556, or 15.56%.