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AysviL [449]
3 years ago
12

John purchased 100 shares of Black Forest Inc. stock of at a price of  $150.68 three months ago. He sold all stocks today for  $

158.29. During this period the stock paid dividends of  $4.69 per share. What is John’s annualized holding period return (annual percentage rate)?
Business
1 answer:
GarryVolchara [31]3 years ago
8 0

Answer:

= 32.7%

Explanation:

<em>Return on a stock is the sum of the dividends and the capital gains.</em>

<em>Capital gains = Sales value of stock - Cost of investment</em>

                      = (158.29 -150.68 )× 100

                       = 761

Dividends =  4.69 ×100

                 =469

Cost of investment =150.68   ×100  

Return in %

                    = Total return / cost of stocks  ×100

                   =(761 + 469)/ (150.68   ×100 )  ×100

                   =8.2% for 3 months

Annualized return

                      =( 8.2 %/3 ) × 12

                       = 32.7%

Annualized return= 32.7%

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