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FromTheMoon [43]
4 years ago
6

You bought a stock one year ago for $48.28 per share and sold it today for $55.92 per share. It paid a $1.38 per share dividend

today. What was your realized​ return?
Business
1 answer:
Snezhnost [94]4 years ago
4 0

Answer: 17.9%

Explanation:

From the question, a stock was bought one year ago for $48.28 per share and sold today for $55.92 per share and also paid a $1.38 per share dividend today.

The realized​ return will be calculated as:

Po = (P1 + D1) ÷ (1+Re)

48.28 = (55.92 + 1)/(1 + Re)

48.28 = 56.92/(1 + Re)

Cross multiply

48.28 + 48.28Re = 56.92

48.28Re = 56.92 - 48.28

48.28Re = 8.64

Re = 8.64/48.28

Re = 0.179 = 17.9%

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