Question

MedTech Corp. stock was $55.25 per share at the end of last year. Since then, it paid a $0.45 per share dividend. The stock price is currently $62.50. If you owned 500 shares of MedTech, what was your percent return

Answer 1

Answer:

Percentage Return = 0.13936651584  or  13.936651584%  rounded off to 13.94%

Explanation:

To calculate the return percentage, we need to take the total return provided by the share in form of both dividends and capital gains. The total yield or return for the holding period can be calculated as follows,

Percentage Return = [Dividend + P1 - P0] / P0

Where,

• P1 is price today
• P0 is the purchase price

Percentage Return = [0.45 + 62.50 - 55.25] / 55.25

Percentage Return = 0.13936651584  or  13.936651584%  rounded off to 13.94%