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nasty-shy [4]
3 years ago
10

Janet bought a share of stock for $47.50 that paid a dividend of $.72 and sold one year later for $51.38. What was her dollar pr

ofit or loss and holding period return
Business
1 answer:
LiRa [457]3 years ago
6 0

Answer:

Dollar profit/loss= $4.6

Holding period of return = 9.68%

Explanation:

Janet bought a share of stock for $47.50

Dividend paid is $0.72

The stock was sold later at $51.38

The first step is to calculate the dollar profit/loss

= stock after a year - cost of stock + dividend paid

= $51.38 - $47.50- $0.72

= $4.6

The holding period return can be calculated as follows

= dollar profit/loss ÷ purchasing price of stock

= 4.6/47.50

= 0.0968×100

= 9.68 %

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