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 pric

Question

Kipish [7]

2 years ago

5

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 pric

e is currently $62.50. If you owned 500 shares of MedTech, what was your percent return

Business

1 answer:

gladu [14] · Answer 1 · 2022-12-25T20:30:14+03:00

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%