Question

In: Finance

Ryan buys a stock in Johnson & Johnson (JNJ) for $50. After one year, the stock...

Ryan buys a stock in Johnson & Johnson (JNJ) for $50. After one year, the stock price is $68 and he receives a dividend of $3.50. What is his return for the period?

Solutions

Expert Solution

Return for the period = (End price - Beginning price + Dividend) / Beginning price
Return for the period = (68 - 50 + 3.50) / 50
Return for the period = 43%
Answer : 43% is his return for the period

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